What the Real Estate Media Don’t Want You to Know about Las Vegas Luxury Real Estate
Posted by Bruce Hiatt - June 27th, 2007
Categories: High Rise Condos
If you believe everything you read about Las Vegas real estate in the media these days or believe the forecasts of the self proclaimed real estate consultants then we’re sure you are ready to jump out the window. Afterall, the Las Vegas luxury real estate market is a disaster according to various real estate consultants and the media. Some sellers are running for the exits and selling Las Vegas luxury condos or hotel condos below the price they paid two or three years ago. Buyers are sitting on the sidelines because the $200,000 price reduction opportunity presented to them just isn’t enough to make them want to buy. The luxury real estate consultants and media keep telling them the prices are going to go lower. So what’s wrong with this picture? Plenty.
Consider Sky Las Vegas luxury condos for example. Three years ago the developers paid a little over $4 million an acre for the prime Strip land where Sky now sits. Prices currently range from the $500,000’s to $9 million. So according to the real estate media, that means soon the Sky condo prices should dramatically fall to about $200,000’s and up. Isn’t going to happen. As of June 2007, that same land under Sky Las Vegas would now sell for $34 million an acre. That’s over 8 times valuation!
Did you know that over $80 Billion, yes I said BILLION, of luxury construction, hotels, casinos and more are being built along or next to the Las Vegas Strip? That price point is more than the GDP of some countries.
So ask yourself, why is the real estate media predicting doom and gloom for Las Vegas and yet savvy developers are buying Strip land at such high prices like there’s no tomorrow? What do they know that the real estate media and Wall Street don’t want to tell you?
With $34 Million an acre now for Strip land, just how does a developer make a profit in building luxury condos or hotel condos now? Well, they either cancel the project or they charge much higher prices per square foot than today’s market reflects.
So who’s the fool? The media refuse to show the very limited supply in existence now or over the next five years in Las Vegas for luxury condominiums along the Strip. They refuse to show the high number of luxury condo projects cancelled will result in very limited supply. The media and consultants also refuse to show that today’s prices per square foot are considerably under market in comparision to the future prices required in order for a developer to make a profit.
Think about it. Savvy buyers will grab their Las Vegas luxury condo or hotel condo NOW. Buyers who believe the real estate media and consultants will talk about how they wish they should have bought in 2007 while the buying opportunies existed.
Which type of buyer are you? Believing the real estate media without knowing the real facts or savvy buyer? Contact me at 702-456-7080 x201 PST and let me tell you about the deals we have now and coming this year for Las Vegas luxury real estate.
Copyright 2007, Luxury Realty Group Inc. All Rights Reserved.
Bruce Hiatt, Broker, CRS can be reached at 702-456-7080 x201.
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Copyright © 2008 Luxury Realty Group LLC. All rights reserved.