Downtown Denver condo market faces challenges as inventory grows
Downtown Denver Condo Market Facing Challenges
The condo market in downtown Denver is currently experiencing a surge in inventory, leading to a challenging situation for potential sellers and buyers alike. Data from the Denver Metro Association of Realtors shows a 29% increase in available condos and townhomes compared to the previous year. However, this increase in inventory has not translated into increased sales, with purchases dropping by 15% in the first five months of the year. Median prices have also seen a 6% decrease, while the average days on the market have increased from 38 to 53 days.
One of the contributing factors to the market’s challenges is the construction of a new building that will introduce hundreds of new units to the market. Upton Residences, a two-tower project located at 18th Street and Glenarm Place, is set to become downtown’s second-largest condo building by unit count, with a total of 461 units.
Despite the current market conditions, Upton Residences has already sold approximately 10% of its units. The development offers a range of units, from $3 million penthouses spanning 1,855 square feet to 500-square-foot one-bedroom condos starting at $365,000. The most popular units among buyers are the two-bedroom, two-bath condos, which range from 891 to 1,352 square feet and are priced between $700,000 and $900,000.
To attract buyers, the developer is offering incentives such as a free year of HOA dues and a 25% commission advance for the buyer’s real estate agent at the contract signing.
While there is significant interest in Upton Residences, some potential buyers are hesitant to commit due to the building’s completion timeline. However, others are optimistic about having a variety of options available when the building is ready, or they hope to secure a lower interest rate.
For buyers interested in older units with character, a 10th-floor condo once owned by Gov. Jared Polis is available at 1827 Grant St. The unit is listed for $1.3 million and offers 2,800 square feet of living space, along with amenities such as an indoor pool, sauna, and private fitness facility.
One of the challenges faced by real estate agents like Delroy Gill, representing the Grant St. unit, is convincing buyers to consider downtown living. High HOA fees, such as the $1,839 monthly fee for the Grant St. condo, can deter potential buyers who may opt for a house or townhome instead.
Despite these challenges, Upton Residences is attracting interest from a diverse range of buyers, including young urban singles and couples, as well as older individuals looking to downsize or relocate from 55+ rental communities. The development’s amenities, including a rooftop pool, hot tub, resident lounge, and retail space, aim to create a unique living experience in an area that is transitioning into a residential hub.
