LuxBeat Local Real Estate Professionals discuss rumors, facts and opinions on Luxury Real Estate in Boston, MA and Providence, RI

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.

The prices at the Ritz Carlton in Boston continue to climb.  Sales are being recorded at $1,500+/foot for units on high floors with premium views.  With all the new construction pricing around the city, The Ritz is becoming more and more valuable.  Construction costs have gone through the roof and therefor developers are forced to sell at prices in the $1,000 to $2000+(Mandarin Boston) price range.  This in turn pulls up the pricing in pre existing properties around the city. Condos at 3 Avery, which is the low rise portion of of the Ritz Residences, are also seeing an uptick in pricing and activity.  What was once $600 a foot two years ago is now approaching $800/foot. The best recource to see evidence of this pricing increase is to look at our sales grid.(http://www.luxuryboston.com/Ritz-Carlton-Condos)

In my honest, professional opinion, I see prices for the premium units at The Ritz approaching $2,000/foot in the very near future(2-3 Years).

In the recent weeks I have had the opportunity to preview The Clarendon(<---click to see floorplans and pricing) on the corner of Stuart and Clarendon.  With over 30 floors, this Boston luxury condo and apartment property could prove to be one of the best newly constructed luxury condo buildings in Boston. Along with The Bryant, it is constructed with concrete between each floor.  Although costly to the developer, in the long run, it should prove to be more durable, valuable and sound proof.  The ceiling heights at The Clarendon will be close to 10 feet and units will boast floor to ceiling windows.  Add an Equinox managed gym, a top of the line restaurant and gourmet market this under construction luxury condo and apartment building is 100% worth a look.

The highly anticipated 285 Columbus Lofts project, located on the corner of Clarendon and Columbus on the Back Bay/South End border, received it’s certificate of occupancy this past Monday and the first closings were on 5/15/08.  A perfect blend of trendy loft-style condos and full service amenities has made The Lofts at 285 Columbus one of the fastest selling new construction projects in Boston’s new luxury condo market. As of 5/15/08, almost 70% of the entire building is under contract and that is within just a few days of receiving it’s C/O. 

For more information on pricing, floorplans and for units that are for both sale and rent in this new loft project, please visit : http://luxuryboston.com/285-Columbus-Lofts-Condos

On the last day of March, 2008, Joshua A. Golden of Rikeman Real Estate, founder of LuxuryBoston.com, completed one of the largest, single family home sales in Boston History. The beautiful 9,500 square foot mansion, located in Beacon Hill was purchased by a European buyer for $9,500,000.00.  It is by far, one of the most breathtaking properties in all of Boston. The home was built with old New England charm, coupled with modern, top of the line ammenities.  The property was gutted to the studs just over three years ago and sits on one of the prettiest streets in Beacon Hill, Mt. Vernon Place, just a block from the public garden.

*Joshua A. Golden of Rikeman Real Estate represented the buyer and Beth Dickerson of Gibson Sotheby’s represented the seller.