The 39-story residential building, which features just under 400 units, is one of several that have seen a recent uptick in recent buyer activity.

Two new amenity-rich developments—Yerba Buena Island and Treasure Island—are redefining the luxury housing market in San Francisco, a space-limited city that has a reputation for making it exceedingly difficult to get projects approved.

After a long dormant period where many new downtown San Francisco condo buildings were fallow fields of unsold units, green shoots are beginning to show in that segment of the city's housing market. Condos have always been more plentiful on the San Francisco market than single-family homes, and a glut of new condo units have been languishing for sale since the days of the pandemic. But that protracted period when supply stood high and demand (and prices) fell appears to be shifting, based on what a number of brokers say they are experiencing.

A penthouse on San Francisco’s Yerba Buena Island has sold for $3.23 million, setting a price record for the new and unique San Francisco neighborhood, according to the Compass real estate firm. Penthouse 602 is part of The Bristol, a five-story, 124-unit condominium building offering residents fantastic views of the Bay Bridge and other San Francisco landmarks. The three-bedroom, three-bathroom luxury condo spans 1,971 square feet inside. Outside, the wraparound terrace adds another 421 square feet.

The most expensive luxury condo sold on Yerba Buena Island to date just closed this month, a sign of fresh homebuyer interest ticking up at one of the region's newest housing developments. The Bristol's first big sale of the year — Penthouse 602 — sold for $3,230,000, a record price for San Francisco's Yerba Buena Island. It was not listed on the MLS and it closed the first week of January, a representative for the building told the Business Times.

It’s a great time to live in San Francisco. Yes, the city has its struggles, from inequality and the ongoing drug crisis to government bureaucracy that can be almost comically inefficient. But there are also so many reasons to be hopeful about SF’s future and to celebrate what’s ahead in 2024.