LuxBeat

Thought I would just vent a little on the blog here.  If you own a real estate company and depend heavily on Condo Sales, you might as well lock up your doors or downsize fast.  The total number of Condo sales over the first 6 months in and around Boston is down 30% to 70% depending on the neighborhood. Yes, 30% to 70%!!!!! Otis, Coldwell, Sotheby’s, look out below.

One of Boston’s premier office towers, The John Hancock Tower was foreclosed on.  Bet you did not know that. It recently sold at auction in New York City for $660 million. That is half of the $1.3 BILLION dollar price tag it sold for 2 years ago.

Beautiful Mandarin Boston Rental Listing - Located at 776 Boylston Street in Boston’s prestigious Back Bay and attached to some of the highest end shopping and restaurants in New England, this stunning 2 bedroom, 2 bathroom unit sits on the 10th floor of the exclusive residence tower. Unit Features:
- 1,860 Square feet of living space
- Hotel services
- Juliet balconies
- Chef’s kitchen
- 5 piece master bathroom
- Enormous walk-in closet
- Gas fireplace
- Recessed lighting
- 1 Valet, Garage parking space
- In unit washer/dryer
- Wine Fridge
- Brazilian Cherry Hardwood Flooring
- 24/7 Concierge and security
Price: $10,200/month(Gas, A/C, heat, hot water, and parking included)

I had the chance to visit the W Residences(<-----floorplans) sales office this week. I was very impressed with the finishes(Dark Bamboo flooring, granite/stone countertops, double sinks, soaking tub, granite countertops, and beautiful floor to ceiling windows).  The pricing was a bit steep but with new construction costs, it is tough to price anything reasonably. On the rear of the building, facing the South End, pricing starts in the $800/foot range.  On the front however, we are looking at pricing in the range of $1,050(Lower Floors) up to $1,500 for the beautiful penthouses.  Your 2 bedroom, front facing entry point is $1,375,000 and quickly moves to $2,000,000+ as you move to higher floors. The building will be spectacular with its hotel services, spa, gym, valet parking, bars, lounges and fine dining. I will be looking forward to seeing how sales go in this challenging time and poor lending environment.

Due to the rough economy, some luxury condo seller’s are resorting to renting their units out in order to stop the proverbial bleeding. Rather than making money, some owners are willing to let their Ultra Luxury Condos rent for prices that put then at a HUGE loss per month.  In most cases, owners are unable to recoup more than 50-60% of their carrying costs.  This is shown by some of the recent rentals at The Mandarin Oriental, One Charles and The Ritz Carlton. Units that were on the sales market for $2.5 to $3.5 million dollars are now renting, in some cases, between $5,500 and $8,000.  I will let you do that math but keep in mind, the condo fees alone, in most of these buildings, are $1.00 to $1.75/square foot. The deals are out there, you just need to find the right agent to dig them up for you.

For the last 2 years we have seen the high end market in Boston remain strong. In 2009 we are finally starting to see what everyone has been talking about for the last 12 months.  Things like, “The market will correct”, “How can sales be so strong with the economy being so bad?”. Brokers, including myself had the answers, but not anymore.  The jumbo(Over $417,000) lending market is very tight, seeing rates at 7%+. Buyers are now telling me that they would rather risk missing the bottom. Even if prices go up $100 to $200/foot, it is a whole lot better than seeing them go down another $300 to $600/foot which is what seems the likely scenario. Sellers are being forced to adjust their pricing by 10%-30% and it could get a lot worse. Some units that were once selling for $4 million plus are now seeing their offers closer to $3 million and closing prices that are not too far off. 

I suggest finding a buyer’s agent that you trust with many years of experience. One who can find you the good opportunities and negotiate the best prices. Please call Joshua A. Golden at 617-233-5800 for assistance or any questions you might have. 

Luxury Residential Group is proud to announce the launching of an exciting new, state of the art website, www.LuxuryCambridge.com.  The site will be managed and run by one of our new, experienced agents, Jessica Schofield.  If you have any questions regarding a luxury condominium or Luxury Apartment in Cambridge, MA, please email us at info@luxurycambridge.com.

Over the recent months luxury condo owners in Boston are finally coming to the realization that even the high end market is not recession proof.  Although we are not technically in a recession(2 Straight Quarters of negative GDP), we are falling towards one very quickly.  Jumbo loans are very hard to come by and if you are able to find one, you could be paying upwards of 6.75%-7%.  A flood of condos have come on the market at the new Mandarin Oriental.  Not one re-sale, in the last 4 months has gone under agreement. We are also starting to see prices at The Ritz-Carlton Boston come down as well. Units that were once $4,000,000+ are now 20%-30% off original asking. It is my professional opinion that the prices at new construction buildings like The Residences At The W, The Clarendon, Mandarin, The Bryant, and 45 Province will all need to re adjust their pricing in order to kick start slowing sales and battle the upcoming economy slowdown and the seasonal winter slowdown. If you are a cash buyer, now is an ideal time to be in the market for a luxury condo in Boston.

I had the chance to visit the W Residences(<-----floorplans) sales office this week. I was very impressed with the finishes(Dark Bamboo flooring, granite/stone countertops, double sinks, soaking tub, granite countertops, and beautiful floor to ceiling windows).  The pricing was a bit steep but with new construction costs, it is tough to price anything reasonably. On the rear of the building, facing the South End, pricing starts in the $800/foot range.  On the front however, we are looking at pricing in the range of $1,050(Lower Floors) up to $1,500 for the beautiful penthouses.  Your 2 bedroom, front facing entry point is $1,375,000 and quickly moves to $2,000,000+ as you move to higher floors. The building will be spectacular with its hotel services, spa, gym, valet parking, bars, lounges and fine dining. I will be looking forward to seeing how sales go in this challenging time and poor lending environment.