Downtown condominium prices in newly constructed buildings have risen faster in San Diego than in other major California markets, according to a report from The Mark Company, a real estate advisory company.
Between November 2016 and November 2017, prices for newly built condos rose 13 percent in San Diego compared to a 6 percent price rise in Los Angeles and a 3 percent drop in San Francisco.
“It’s the highest appreciation that we’re seeing in condos in California,” said Selma Hepp, who wrote the report.
One reason for the higher jump in San Diego is that there aren’t many new condos being built downtown compared to other cities, said Hepp, chief economist with Pacific Union International, the parent company of The Mark Company.
Even with the increases on new condos, San Diego is still a bargain, where the average cost of newly built condos is $719 a square foot compared to $777 a square foot in Los Angeles and $1,717 per square foot in San Francisco.
When it comes to resales, San Francisco and Los Angeles rose 14 percent in each city compared to 9 percent in downtown San Diego, according to the report.
The average resale price in San Diego in November was $614 per square foot, compared to $711 in Los Angeles and $1,057 in San Francisco.