2015 In Review – Playa Vista Real Estate
The year 2015 will go down in Playa Vista history as the year the community and the Playa Vista Real Estate Market were officially put on the map. Prior to this year we had to describe the location of our 1.3 square mile oasis as a place near Playa del Rey, Marina del Rey and close to the airport. “You know, the cute little neighborhood at Lincoln and Jefferson.”
Playa Vista has now become the landmark and the epicenter of Silicon Beach. Realtors in the surrounding areas are advertising their clients’ properties as being “Close to Silicon Beach” or “Just Minutes from Playa Vista.”
Quite a few Playa Vista centric events contributed to the change in perception and record breaking value increases. The spike in values can be attributed to the strong demand caused by such events as the Google land purchase, the opening of The Runway shops, Playa Vista Phase II’s hockey-stick like price jumps, multiple tech office openings/announcements, media about Playa Vista becoming the center of Silicon Beach and the low levels of inventory for sale.
Below you’ll find statistics about the 2015 Playa Vista Real Estate Market compared to 2014. To present a clear picture of the market we have assembled a section for each segment.
Phase I: 2-Bedroom Condos and Townhomes, 3-Bedroom Condos and Townhouse, Single-family Homes
Phase II: Condos, Single-family Homes
Which Playa Vista condo buildings and single-family homes saw the biggest increase in values? How do single-family home values in Phase I compare to Phase II?
Playa Vista Two Bedroom Condos and Townhomes – Phase I
The overall strong demand for Playa Vista accompanied by a sharp decline in 2-bedroom condo inventory boosted values for these floor plans. Two bedroom condos in Playa Vista’s Phase I make up about 3/4’s of the neighborhoods sales (79% in 2014 and 70% for 2015).
The announcement of Google’s land purchase and the dramatic change in 2-bedroom condo inventory pushed prices higher and higher. Price per square foot increased by $100 from Q4 2014 to Q4 2015 for a gain of 21.4%.
The biggest pinch on Playa Vista’s inventory occurred with 2-bedroom condos. In 2015 there were 44 fewer 2-bedroom condos listed when compared to the previous year. This 37.5% drop in supply only resulted in 11.5% fewer sales. Less inventory and more demand than the year before really heated up this part of the market.
Playa Vista Three Bedroom Condos and Townhomes – Phase I
Three bedrooms are a rare commodity which is one of the reasons all of the new Phase II homes recently built have been three bedrooms plus. With the low number of sales in this market segment it’s best to look at the year over year comparison or consecutive quarters to get a good picture of the trends for 3-bedroom homes in Playa Vista.
Year over year the three bedroom average price per square foot has gone up 17.61%. The median and average sales prices went down when comparing Q4 2014 to Q4 2015, but this is mostly due to the difference in the size of the homes sold during each quarter. In Q4 2014 the three bedrooms sold were on average 266 square feet larger than in Q4 2015.
Tip for Sellers: If you have a 2-bedroom plus den it may be beneficial to make the space useable as a 3rd bedroom when showing your home. With the rarity of 3-bedroom condos in Phase I, this may help your home stand out against competition.
From Q4 2014 to Q3 2015 the average price per square foot went up $101.00, a 24.6% increase. What’s interesting and a bit misleading is the even bigger jump in the 4th quarter from $519 to $718 per square foot (up 38% in one quarter). While prices definitely went up at the end of the year I don’t believe this number is an accurate representation of the entire 3 bedroom market.
There were only three 3-bedroom homes sold in the 4th quarter and they were all in the Primera Terra building. Primera Terra has benefited from being the newest of Phase I buildings (built 2011). This building is located on the border of Phase I and Phase II, and it’s close by he Resort Gym and Runway Shops. Many people are comparing this complex to the new Camden condos across the street which ended up selling for nearly $1000 a square foot. These factors have contributed to the demand and upside for Primera Terra.
Inventory and the number of sales for 3-bedroom condos in Playa Vista was nearly the same for both 2014 and 2015.
Playa Vista Single-family Homes – Phase I
At the end of 2015 record sales prices were reached within the detached residences of ICON, Park Homes and Capri Court. Single-family home values are reaping the benefits of the higher prices in Phase II. When Brookfield increased Everly’s anticipated pricing from mid $1,000,000’s to mid $2,000,000’s, prospective buyers turned to the larger Phase I single-family homes on the market. This increased demand created competition and resulting record values.
The average price per square foot went up 13.22% comparing year over year and 47.05% when looking at the difference between Q4 2014 and Q4 2015.
While less new inventory came to market in 2015, sales more than doubled from 8 in 2014 to 19 sales in 2015. During 2014, single-family homes accounted for just 7% of sales and in 2015 this number increased to 17%.
Playa Vista Phase II Condos
The Phase II condo communities Skylar and Camden had dramatic pricing changes from when they were first released for sale in 2014 to where prices ended up in 2015. The numbers below reflect pricing for new construction sales from the builder. In 2016 we have had a few Skylar re-sales close which sold around $1,000 per square foot.
The following chart shows the average price per square for both Phase I 3-bedroom condos and Phase II condos. All of the condos in Phase II are 3-bedrooms plus. There are many differences such as units per building (largest in Phase II is 6 units and the smallest in Phase I is 39), private garages vs. subterranean parking, current upgrades and larger floor plans in Phase II on average.
Playa Vista Phase II Single-family Homes
All three of the Phase II single-family neighborhoods available for sale throughout 2015 (Woodson, Asher and Trevion) were released prior to the Phase II condos. A majority of the sales prices were locked in prior to the Google land purchase late 2014. Although, very much like Skylar and Camden, values for Phase II single-family homes rose significantly over 2015.
By the end of the second quarter of 2015 almost all of the new construction single-family homes had closed their sales which peaked around $700 per square foot. There was not any Phase II single-family inventory left from the builder the values for these homes continued to increase based on the surging prices of Skylar and Camden.
During the second half of the year there was an Asher re-sale that sold for $852 per square foot, re-affirming the value increases for Phase II single-family homes. Brookfield then released Everly and Marlowe homes for sale near the end of 2015 for an average price per square foot of $876. We’ll cover what’s going on with Everly and Marlowe in our 1st Quarter Market Report of 2016 (available in a week).
There is no doubt 2015 was a record year for Playa Vista’s real estate market. With the continued development of creative office space, bringing the top tech companies in California to our community, the residential real estate market should maintain its allure, even at higher values.
These analyses were made in good faith with data from sources deemed reliable, but they may contain errors and are subject to revision. Statistics are generalities and how they apply to any specific property is unknown without a tailored comparative market analysis. All numbers should be considered approximate. Please contact us with any questions or concerns. This information is deemed reliable but not guaranteed. This article is not intended to solicit listed property. If your property is currently listed for sale with a broker, please disregard this article.