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Construction Begins on $300 Million W Austin Hotel & Residences
By Kathryn | May 11, 2008
In an effort to help meet Austin’s stated goal of revitalizing the city’s downtown area by bringing 25,000 new residents into its core by 2015, the W Austin Hotel and Residences has begun construction. With a price tag of nearly $300 million, the creation of this elaborate new building is designed to stimulate the local economy and generate a slew of new employment opportunities throughout the area. The goal is to have the building complete by 2011; buyers have already begun to invest in securing their new downtown homes for that date.
The W Austin construction reflects a growing trend in the downtown area towards the development and purchase of condos. A recent study of the condo market in Austin reveals that there are twelve big residential projects underway in downtown Austin and seven of them are condo projects. Condo construction is expected to peak this year but to continue steadily through 2009 and 2010; the study notes that one third of the condos slated for 2010 completion have already sold to their future residents.
People who are interested in purchasing downtown condos should know that prices are expected to rise after 2010. At that time, development appears to be focused on the area of “super luxury” condos which are out of the price range of the average Austin resident. In the meantime, downtown condo prices are considered to be affordable and are in fact less expensive than a comparable single-family home in central Austin. These are factors which are driving the interest in condos including the W Austin Hotel & Residences project.
So who is buying these condos? It turns out that the buyer market for downtown Austin condos is actually quite diverse. Although the majority of buyers (35%) are in the age range of 30-44, there are a significant number of people both younger and older than this who are investing in downtown Austin property. This serves to create a diverse downtown core for the city which should allow it to become an even more interesting area over time.
Topics: Upcoming Projects |