Sale of Rentals on Upswing

Following a trend that began last year, 1988 first-half sales of San Diego-area apartment projects rose 46% over the same period last year. At the same time, this year’s first-half building permits continue to reflect the decline in apartment construction, which began in late-1985, by dropping 40% from year-ago totals.

Both trends were included in the just-released John Burnham & Co. San Diego County Apartment Report.

The report showed that 657 projects changed hands, compared to 448 in 1987’s first half. New permit valuations slumped to $85,573,796 compared to $143,005,546 last year.

George Carlson, who compiled the report, said, “The sales figures indicate investor interest in apartment properties. The main limitation on sales is that demand exceeds supply.”

He attributed the slowdown in construction to a variety of factors, including previous overbuilding, the shortage of zoned land and the pressures of growth control.