In case you were wondering if downtown San Jose needed more luxury condominium towers, looks like the answer is a big, fat no. Thanks to Burbed reader sonarrat for alerting us to this story.
By Joe Rodriguez, SJ Mercury News – Posted: 02/02/2011 04:45:28 PM PST, Updated: 02/03/2011 08:34:16 AM PST
Condos or rentals, who cares?
That’s how downtowners feel after waiting years for four large condominium projects to dump thousands of new residents onto sidewalks and into coffee houses, restaurants and retail shops. So far, sales at the projects are creeping along after the housing market tanked.
Thank heaven that nonsense is over. The idea of building apartment towers and selling off the interior units one by one was a great way for developers to make money. As long as real estate kept going up, it was even a great way for condo owners to make money. However, the game of musical chairs came to a halt and a number of condo owners find themselves under water. Units filled with renters, or even worse, units filled with nobody, means the condo lifestyle isn’t at all what they imagined. Homeowner fees climb even faster when not everyone is paying them.
So take a look at this diagram from the article. How did The Three Sixty manage to not sell a single condo if they used to have 90 of them under contract? Did they just cancel them all? Did the would-be owners get their deposits back?
And do you see what’s wrong with this picture? Actually what’s wrong is the statistics. We don’t care how many floors versus sold units there are in each building. What’s important is how many units didn’t sell, because that would tell us how well these other three projects are doing. Or, more likely, how not well.
Edward Tufte, where are you and why aren’t you publicly calling out the graphic designer for this image?
Since the Merc didn’t bother to tell you what you need to know, we will. Here is how well each of the four major downtown high-rise condominium projects have sold.
|Project||Year Built||Total Units||Units Sold||% Sold|
And an even more important thing you need to know: Three Sixty Residences has been featured in Burbed, back when there were units for sale. So much for “finally got a piece of the pie.” Only owners get pie. Renters just get to sniff it coming out of the oven.
The solution? Make the pie higher!