A condo in San Francisco’s Millennium Tower sold for $400,000 less than its original purchase price. A one-bedroom unit sold for $615,000 last week, but the seller bought the condo back in 2014 for over $1 million. Millennium Tower has made numerous headlines over the years for its structural issues. Engineers discovered back in 2016 that the 645-foot-tall building was sinking and tilting. They found the building had sunk 16 inches and was leaning to the west. Engineers claim they have stabilized the building, but the value of its units has dropped dramatically. “The price that you are seeing for the condos at The Millennium is a reflection of the unique situation that is happening to this building,” said Steven Huang, the president-elect of the San Francisco Association of Realtors.The cost of repairs was over $100 million. “Because the repair is relatively new, there is some level of agreement and disagreement even among experts on what the final outcome will be,” said Cristian Gaedicke, an engineering professor at Cal State East Bay. “Assessing the risk for a homebuyer becomes more complex and more expensive.”The drop in value, however, might also signal other problems for San Francisco real estate. Huang said the pandemic still affects how buyers look for homes. He said not many are coming to San Francisco like they used to, so buyers are looking elsewhere for a home. “More people were able to work from home since the pandemic and that is why the demand for downtown condominium residences has dropped off,” Huang said.Combine that with structural issues and it makes sense why the condo lost 45% of its value. However, Huang is still optimistic about the future of San Francisco housing. He says as interest rates drop, and more people go back to the office for work, buying property in the city will be attractive again. “For people who want to be here, want to network here, want to be able to walk to the office and walk to Michelin-star restaurants, this is still a prime location to live,” he said.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter
SAN FRANCISCO —
A condo in San Francisco’s Millennium Tower sold for $400,000 less than its original purchase price.
A one-bedroom unit sold for $615,000 last week, but the seller bought the condo back in 2014 for over $1 million.
Millennium Tower has made numerous headlines over the years for its structural issues. Engineers discovered back in 2016 that the 645-foot-tall building was sinking and tilting. They found the building had sunk 16 inches and was leaning to the west. Engineers claim they have stabilized the building, but the value of its units has dropped dramatically.
“The price that you are seeing for the condos at The Millennium is a reflection of the unique situation that is happening to this building,” said Steven Huang, the president-elect of the San Francisco Association of Realtors.
The cost of repairs was over $100 million.
“Because the repair is relatively new, there is some level of agreement and disagreement even among experts on what the final outcome will be,” said Cristian Gaedicke, an engineering professor at Cal State East Bay. “Assessing the risk for a homebuyer becomes more complex and more expensive.”
The drop in value, however, might also signal other problems for San Francisco real estate. Huang said the pandemic still affects how buyers look for homes. He said not many are coming to San Francisco like they used to, so buyers are looking elsewhere for a home.
“More people were able to work from home since the pandemic and that is why the demand for downtown condominium residences has dropped off,” Huang said.
Combine that with structural issues and it makes sense why the condo lost 45% of its value. However, Huang is still optimistic about the future of San Francisco housing. He says as interest rates drop, and more people go back to the office for work, buying property in the city will be attractive again.
“For people who want to be here, want to network here, want to be able to walk to the office and walk to Michelin-star restaurants, this is still a prime location to live,” he said.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter
