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New Condo Construction Grabbing Big Price Premiums

As San Francisco enters into a condo construction boom reminiscent of that before the 2008 crash, new condos are grabbing premiums of up to $400 per square foot over their older condo neighbors. The divide is particularly stark in Potrero Hill, where older condos built before 2007 receive $722 per square on average, while the new Onyx building is reaching a heady $1,135 per square. In Hayes Valley, Duboce Triangle, the Inner Richmond and Nob Hill premiums for new condo construction are all more than $200 per square when compared to their pre-2007 counterparts that are being resold.

The city's old apartment buildings turned into condos, initially constructed between 1920 and 1940, are also seeing a surge in value. These older buildings are often large, with an average unit size of 1319 square feet compared to the 1146 square feet of more modern buildings, and filled with light and detail. However, many of the priciest individual buildings are those built down in SoMa, Yerba Buena and South Beach. Luxury standouts like the 4 Seasons, St. Regis, Millennium and Infinity all bring in prices over $1,200 per square. It is in these downtown neighborhoods that there are the most condo sales, with 834 in the past year, far above the 493 of the Noe Valley/Mission area that came in second.

· New Condo Construction in San Francisco [Paragon Real Estate]