What's happening on the other side of the pond, condos, and other things

As part of my monthly networking group Forum XXII, I was fortunate enough to hear Michael Miller, the president of Miller Condominium Marketing. Michael's company develops condominium projects all over Puget Sound. He has developed many projects in downtown Seattle. His company is developing the old Queen Anne High School and the Cosmopolitan in Seattle and did the Boulevard in Kirkland. The company has about 20 projects planned in the next couple of years, so I would say he knows the condo market well!

He presented a lot of good information about condos and I have included some of the highlights of his talk below.

Who has been buying the Seattle condos?

38% are local Seattlites who come from other parts of the city.
33% are boomers
18% are from out of state.
Multiple family members are buying units in the same building. Because of these new condos there has been a 20% increase in downtown Seattle's population

There are 10,000 new condo units projected to be built in Seattle. Right now there are only 3000 units that have obtained financing. So the question is, will all of these projects get built?

His predictions:

Condo complexes will be created in the suburbs that will mirror a small urban village. These new villages will be similar to urban neighborhoods with restaurants, shopping, and amenities all on site. A new village themed project is coming into downtown Burien with 300 units and a retail core. In a 600 unit complex in downtown Woodinville, there will shops, wineries, restaurants, even a spa!

What will be hot: dog parks, pea patches, and car wash areas.

What will not: media rooms, business areas, and conference centers.


Other thoughts:

There have been 7000 rental units lost to condo conversions over the last few years, so the apartment market is tight.

Condos are booming in Snohomish county, too. The condo market there appreciated 25% in 2006.
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On a similar note, the April issue of Seattle Metropolitan magazine has a whole section called Condo Mania. There is a great checklist of things to look for when buying a condo, information about upcoming projects, and a condo shopping guide. I thought the questions to ask when looking at condos were great questions. A couple of questions raised here were ones many buyers do not think about. When you look at a condo conversion, ask whether the condo has been brought up to current building codes, including standards for earthquakes and fires. It is important to know what you are buying so you can make an educated buying decision.