Portland new condo market slows slightly, redevelopment projected
Courtesy / New Height Group
A rendering shows Verdante at Lincoln Park as seen from the intersection of Hampshire and Federal streets. in Portland. The project is under development by New Height Group and is expected to have 31 condos.There will be retail on the street level, accessible from Hampshire Street.
The number of Portland condominiums sold leveled out in 2018, a trend that coincides with national trends.
But 2019 is projected to be a strong resale market, as vintage buildings are redeveloped to create updated condos, according to Vitalius Real Estate Group’s annual condo report, produced by associate broker Elise Loschiavo.
The slowdown in condo sales is possibly because of rising interest rates and a volatile stock market, the report says.
Average condo prices are also continuing to slow. In 2018, the average price rose around 6%, compared with 20% in 2017.
A notable Portland condo ”first” is Hobson’s Landing. According to the report, Hobson’s Landing will include Portland’s most expensive condo development, expected to cost almost $3 million. Hobson’s Landing is under contract at the former Rufus Deering Lumber site. The condo portion of Hobson’s Landing is part of Reger Dasco Properties overall multi-development at the site, which also includes a hotel and retail. Reger Dasco, a developer partnership that has built high-end condos in Portland and other locations, bought the 2.5-acre Rufus Deering property at 383 Commercial St. in November 2016.
Portland has one of its first large off-peninsula developments, Stevens Square at Baxter Woods, underway in Deering Center. The Developers Collaborative project features condos starting in the mid-$300,000s. Phase One includes 20 units, with occupancy in late 2019, according to the report.
Overall, the report says, hundreds of new condos are being planned, under construction and recently completed throughout Portland.
“We’re seeing demand in places that haven’t had any large projects in the past several decades, such as East Bayside and Deering Center,” the report says.
At 60 Parris St. in the Bayside neighborhood of Portland, Parris Terraces will include 23 one-bedroom units with onsite parking. The “workforce housing” condos, which broke ground last June, will start at $215,000 and is aimed at first-time buyers and retirees otherwise priced out of the market. The developer is Jack Soley, a principal at East Brown Cow Management Inc., which owns Canal Plaza, the Hyatt Plaza and other prominent buildings in Portland. The site is part of the former city public works depot that was sold off in parcels last year.
New Height Group, developer of the Luminato condos in Portland, has plans for Verdante at Lincoln Park, which will have 31 condos near Federal and Franklin streets. That’s expected to open in 2020.
2019 forecast
The report projects a strong 2019 resale market.
“With new construction condos commanding a 54% price increase over resales, a well-constructed, updated condo in a vintage building will be an attractive option for buyers,” the report says.
In addition, the report says, condo sales are expected to grow off-peninsula in response to rising prices in downtown Portland.
“For years, downtown Portland has been the primary focus of buyers who prioritize walkable, bike-friendly neighborhoods with a variety of corner stores, shops and restaurants within blocks of home,” the report says. “However, downtown Portland condo prices are nearly double the price of a condo off-peninsula. Recently, many improvements have been made in Deering Center and Woodfords Corner, and we’re seeing a ton of new energy from residents and businesses excited to make their neighborhoods even more vibrant and easy to navigate on foot or bike.”
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