BROWNFIELD TEN BLOCKS FROM THE HEART OF THE WESTERN WORLD
How do you price a condo in NOMA? There is a glut so don't expect anyone to pay a million bucks for that 1600SF penthouse. Plus this is DC, not Manhattan, so be reasonable. Right?
But doesn't supply create demand in certain circumstances. NOMA is not Centerville, Va. It's an incredible location that has sat empty for decades because of weird historical factors, i.e. riots and the false beleif that with a car it does not matter where you live.
Now hundreds of condos are being developed. A Safeway supermarket is on the way, and the restaurants, health clubs etc. demanded by busy people will follow. Consideiring how blighted Massachusetts Ave. was, the sight of the construction cranes and deep holes in the ground are amazing.
Is NOMA an exception to the rule? Price goes down as supply goes up?
Madrigal Lofts -- A 12-story, loft-style condo near the corner of Massachusetts Ave. and Fourth St. NW
The Sonata -- An 11-story, loft-style condo near the corner of Massachusetts Ave. and Third St. NW
The DuMont at Massachusetts Ave. and Fourth St. NW
February 24, 2006
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3 comments:
Been a while since your last econ class? Supply never creates the market; demand always does. If people didn't demand condos in NOMA, you can bet developers wouldn't be building them. If you had the money to build a condo building, would you build where there's no demand? Doesn't happen.
I just went on a walk around NOMA this weekend, and saw that several blocks are set to be part of an enormous development with millions of square feet (office, retail, and residential). What's going on with that? Website?
Well the point is how to measure the actual demand for a particular area? I've got to admit (from self-interest of course) that I hope that the market for downtown DC condos is not the same as that for the overall metro area. I certainly didn't want to live in a tower in Courthouse or Ballston or Huntingdon or wherever and wanted to live downtown within walking distance of where I work. NoMa fits that bill. Now, why should I be arrogant enough to assume that there are just thousands of people who have the same desires?
NoMa can market itself to people who now find Chinatown/Gallery Place too expensive. That's got to fill a couple of buildings -- but not possibly all that are slated for construction.
It'll fill up ... And DCBubble is correct in this case that supply is creating the demand ... Creating the demand at that location that is ... Building such a large number of massive buildings could very well be creating a demand among the "just out of school" professionals who in the past had to settle for living in places like Ballston and riding the metro in to DC for work and play. The bigger question though is, do we really want a "flat city" in so central an area and so important placement as to be between the establish residential areas and the Capitol? It seems to me this is a a mistake in the making. This area should have been reserved for less massive and more luxurious apartments/condos. The traffic congestion and the visual monolith we're letting be created on so an important avenue will have longterm detrimental effects to the overall plan for downtown DC. These buildings belong in Ballston and not on Mass. Ave.
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