December 6, 2014 – Developers are starting to test demand for River North condominium units with prices north of $600 per square foot, according to a new report.

Appraisal Research Counselors says most of the new condos in downtown Chicago are being marketed to upper income dwellers. Two of those projects are in River North. 100 Huron, opening in spring 2016 with 28 units, and the planned 46-unit 400 West Huron both started selling in October, offering units with an average price of $650 to $685 per square foot.

400 West Huron (above), a 15-story condo, started out as a proposal by FoodSmith Huron Associates for a 20-story rental property but met opposition from 42nd Ward Alderman Brendan Reilly.

Unsold inventory is down, says the report. At the end of the third quarter of 2014, only 467 newly constructed units remained unsold, down from 505 units at the end of the first quarter. It is the lowest overall level of unsold inventory since Appraisal Research Counselors began reporting in 1997. The biggest block of unsold inventory is at The Guild, a 176-unit condo in the South Loop.

And the market for used condos is rebounding, according to the report. A survey of 65 buildings with a total of more than 20,000 units shows the number of condo listings has increased 21 percent from last year and prices have increased seven percent.

Don DeBat assisted with this article.