Few large projects are in the works, most are small-scale conversions New condo construction has been at a standstill over the past two years and even with inventory dwindling, recent data show a decrease in the number of new projects in the pipeline.
| Check the condo fees |
| In a slowly recovering economy, condo fees concern area buyers. |
| “Buyers are interested in keeping condo fees in check, which means streamlined amenities,” said Lynn Hackney, president of Urban Pace Realty. |
| Buyers need to ask themselves how often they will use the pool or the workout room. |
| “Amenities are overrated,” she said. “People are budget-conscious. Two new condos in Arlington, the Phoenix and the Residences at Liberty Center, have high condo fees and this is a drawback.” |
Some existing projects have restarted in Arlington and in Washington where lots are being flattened and ground broken along 14th Street Northwest. But many experts say there will likely be a shortage of condominiums in the Washington area in the future.
“Regardless of the market, buyers prefer new if they can afford it,” said Adam Gallegos of Arbour Realty in Arlington. “But a lot of those products are in the $650,000 range and there are not many options because they haven’t been building.”
“There’s been a decrease in condominium registration applications in the past six months,” confirmed Najuma Thorpe of the D.C. Department of Housing and Community Development.
Thorpe said the primary types of condominium projects in the works are conversion condos. Conversion condominiums are existing structures — such as occupied rental housing, vacant rental housing, single-family residences and commercial buildings — that are converted from their original use to condominium ownership.
The conversion of the old Whitman-Walker building and the two new-construction condo projects on 14th Street — the District Condos and the Utopia project — represent large-scale projects that have been green-lighted recently. But they are not the norm.
“The trend has been toward smaller projects, often called ‘Boutique Buildings,’ ” said Lynn Hackney, president of Urban Pace Realty. “Because of D.C.’s historic architectural stock, there are some interesting conversions, such as the Lofts at St. Monica’s on Capitol Hill, which is a former church.”
In Arlington, it’s been a mixed bag, said Gallegos. The Bromptons in Cherrydale has sold out while Turnberry Towers has struggled.
“Arlington is the No. 1 choice for young professionals, but there is not a lot of inventory out there,” said Gallegos.
“The shortage is having an impact now.”
