Condo Sales Hot While Converters Cool

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CHICAGO-While Downtown condominium conversions are returning to normal levels, 2006 could be a record year for new multifamily construction, according to Appraisal Research Counselors. The multifamily sages report marketing efforts have begun on 14 projects, involving 3,382 units, through the first four months of the year.

Sales also are running at a record pace, with 1,624 units going under contract or reserved during the first quarter. It is the largest number Appraisal Research Counselors has seen since it began tracking sales in 1997. “Consistently, the bulk of the sales velocity tends to fall within the $300 to $399 per sf range, along with an increasing trend toward higher prices in very well located, more luxurious buildings,” vice presidents Ron De Vries and Gail L. Lissner say in their most recent “Residential Benchmark” report. “Newly announced developments with product below $300 per sf was non-existent in the market.”