Phase II Housing and What it Means for You
We’ve known for some time that there is more housing coming to Playa Vista, East of the current development. It’s only recently that it has been announced what some of the new home product will be. The following (partial) list of properties expected to be built was taken from Playa Vista Today:
1. Brookfield homes will be building a 6-Plex which will be 4 stories, 2 units on each floor, with the garages on the 1st level. These homes will range between 1,500 to 1,800 square feet.
2. Brookfield Homes will be building 22 Homes ranging in square feet 3,000+ to 4,000+ square feet.
3. KB Homes will be building Super Triplexes, which will be 3 story buildings, 1 unit per floor and range between 1,800 and 2,600 square feet.
4. KB Homes will also be building 36 Single Family Homes, they will be 3-stories each, 2, 3 & 4 bedroom homes ranging from 2,200 – 2,800 square feet.
5. TRI Pointe Homes will be building 66 individual homes, 3-stories each, they will build in phases of 8 homes, aiming to open models by October/November, 2013. They will range in size between 1,800 and 2,600 square feet.
6. The Sixth home product will be the affordable housing part of the project which we are awaiting more details.
Other than the for-sale product, Lincoln Property Company and The Irvine Company will be building apartments.
What does this mean for the current residents and those looking to move to Playa Vista? It means long-awaited supply, especially of larger homes, but don’t expect the prices of the new homes to be cheap. The market will likely appreciate more between now and the expected completion, sometime in 2014 or 2015. Additionally, at a 10-20% premium over comparable resales, we may be seeing 2,000 square foot, 3 bedroom condos selling for $900,000-$1,00o,000. “Affordable” condos between 1,200-1,400 square feet may be starting at around $700K.
This is move-up buyer territory, especially when you consider the HOA dues and mello roos costs. It means expanding families who have a little equity should be able to make the move to phase II if they sell their phase I condo, likely to someone who does not currently own in Playa Vista. The old phase will be a popular entry location to buyers new to Playa Vista. Also, expect these phase II Playa Vista condos and townhomes to compete more with the single family homes in upscale areas such as Marina del Rey, Venice, and Playa del Rey, but probably not so much Beverly Hills, Santa Monica, or the Beach Cities (Manhattan, Hermosa, Redondo) who have the advantage in terms of schools for older children.
It is clear to see that a major population shift is about to occur behind those blue fences. This will not just impact that area, but the entire Westside in its redistribution of population and it could get exciting. Stay tuned for more details.