September is shaping up to be a strong month for San Francisco’s new luxury condo listings, according to a report released Monday by Paragon Real Estate Group.
As of mid-month, 49 new luxury—defined as priced above $1.85 million—condo, co-op and tenancy in common (TIC) listings have come on the San Francisco market since the beginning of September, the report said. Themost tohave come on the market inSan Francisco in any given month is 66, which occurred in October 2016, accordingto Paragon.
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A tenancy in common is somewhat of a San Francisco phenomenon. It’s a unit in a multi-unit building that is owned together by all the owners.
"Legally, each TIC is not a separate legal property. However, an agreement between the owners gives each TIC owner an exclusive right to occupy their unit," said Patrick Carlisle, chief market analyst at Paragon Real Estate Group, in an email. "Just recently, in the past couple years, TICs have sometimes started to sell for very, very high prices, in the millions, though most of them are much cheaper."
They make up about 3.5% of the San Francisco market, Mr. Carlisle said, but only a small section of the luxury market.
It will be a few months until Paragon has definitive statistics on listing and sales activity in September and October, but there is typically a very significant spike in activity between Labor Day and the beginning of the mid-winter slowdown in mid-November, according to Paragon.
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Of the five districts that dominate the luxury condo market in the city, the area encompassing South Beach, South of Market (SoMa) and Mission Bay has led the luxury listing market since February 2015, according to the report.
But, while inventory in the district is high, sales reported to MLS in the area have been dropping dramatically, making it one of softest luxury condo markets in the city, the report said. The area—comprised of almost all high-rises built within the last 20 years—still commands the highest dollar per square foot for luxury condos, though.
It’s the Pacific Heights-Marina neighborhood that reigns supreme when it comes to both luxury and ultra-luxury (defined as $3 million-and-up) condo sales.
Indeed, the most expensive condo or co-op sale in San Francisco so far this year was a $22 million property in Pacific Heights. The sale far eclipsed the second most expensive sale in the city, a $9 million comparative bargain in SoMa.