San Francisco attracts many single professionals, couples and empty nesters who need the space a 1BR condo offers. They won’t necessarily need a second bedroom. And they would prefer to be in a more central location than their money would buy were they to pursue a 2BR condo.
That makes the 1BR condo market quite strong in San Francisco.
The average 1BR condo price here was $688,120 in the last quarter of 2013. A majority of sales took place in larger buildings in South Beach, along the Van Ness corridor, Mission, SoMa and Mission Bay. Buyers paid an average of four percent over the list price.
Believe it or not, 11 of the 293 one-bedroom condos sold during this time period changed hands for $1M+. The most expensive was an 1800-square foot unit at Millennium Towers that sold for $2,385,000 on Christmas Eve (see photo).
The most expensive neighborhoods for 1BRs are the Mission, Mission Bay, South Beach and South of Market. Average prices ranged from $729,000-$754,000 in these areas. If you don’t quite have the budget for that, you’ll want to focus on Diamond Heights, Western Addition, Downtown, Van Ness corridor, and Potrero. Plenty of 1BRs sold for $600,000 or less there in the previous quarter.
This type of property is an excellent option for a buyer who wants to owner occupy for a few years before moving up to a larger space and renting out the 1BR. I’ve had many clients do this, and the key is purchasing a place that’s close to public transportation, freeways, and a good retail area.