Seattle Builders 'Dogpile' Luxury Condo Market

The Seattle Post has this report on the 'luxury' condo boom in that city. "All signs point to go in the completion of downtown Seattle's recovery from the last economic downturn, but if developers aren't careful, they could overbuild and be left in the lurch. Builders also should be careful not to dogpile too much on the luxury market, which has been the focus of a spate of condominiums proposed in downtown, with nearly 20 buildings in the pipeline. That analysis came out at the Downtown Seattle Association's state of downtown economic forum." "'Affordability has basically nose-dived,' said Hessam Nadji. 'And that is going to be a hindrance, limiting growth, because it will prevent companies from moving here.' Nadji said that a greater diversity within Seattle's business ecosystem would enable the city to better withstand another recession." "Some regional developers (are) primed to put their bid on Seattle's future. And contrary to Nadji's cautioning, it all seems focused on luxury, leaving the middle class to figure it out or get out of town." "The positioning of Second + Pine, in the Pike/Pine corridor..is part of a larger city-supported initiative to revitalize the link between the two tourist centers to make it easier for money to flow freely there. Belltown resident and Washington State Convention and Trade Center Chairman Frank Finneran said petty street crimes, which he witnesses on his daily walk to work, cast a pall on marketing efforts for the center." "Figure in how the various projects proposed for the Pike/Pine corridor, including the lavish Four Seasons hotel and condos going up next to the Lusty Lady, (which) could help replace the pawn shops and sex stores with better offerings to capture those incoming dollars, and you've got the city's plan. What that doesn't include, though, is how to maintain a balance between the target audience: those who can afford such condos and those needed to provide the city's services." "Second + Pine's 115 condos, averaging between 1,000 and 5,000 square feet, are priced at between $550,000 and more than $5 million. 'Some of these prices are pretty hefty,' said Kate Joncas, Downtown Seattle Association president, referring to local condo market prices. 'Who are these people?'" "(Developer) Dean Jones..takes a hard line on the boundless rise of condo prices in the area. When discussing the sticker shock that could keep some of the condos on the market longer than developers hope, especially if all that is proposed is built, Jones said, 'Honestly, people need to get over it. That's just what it is.'"