2 Reasons Why Las Vegas Continues to be Strong in Real Estate
Posted by Bruce Hiatt - November 3rd, 2007
Categories: High Rise Condos
You must be thinking say what? Afterall, with all of the doom and gloom Blog websites and news media pounding the Las Vegas real estate market on a daily basis, the word strong doesn’t come to mind. Think again, as the facts will surprise you.
Just ask yourself if the Las Vegas real estate is in such bad shape then why does land along the Strip continue to sell at record prices per acre? Oh, that’s an exception to the doom story you say? You can’t have it both ways. If you are going to report the real truth about Las Vegas real estate you need to tell the whole truth. The current truth will tell you two things:
- Las Vegas land prices, especially along the Strip, are not collasping as so much media want you to believe.
Yes, the recent BLM land auction saw little interest but who wants to live on land in those areas? With rising fuel prices and longer commute times, few international buyers want to travel such long distances to get to the heart and action of Las Vegas which is the Strip. With its world class shopping, five star restaurants and incredible entertainment, international luxury real estate buyers only want to live along one place in Las Vegas, the Strip.
I find it so amusing how many of the housing doom websites refuse to allow comments to be posted to correct erroneous information. Afterall, they sell ad space on those websites and why would they want to have their ad revenue disappear if they were challenged with real facts that undermine their stories? We’ve tried to post real facts and they won’t let us.
So what are the facts to back up what I am saying? Well, you know the New Frontier next to Trump Las Vegas sold awhile ago for $34 million an acre. Many said that was just a one time event for such a record land price. Currently planned for that land will be the incredible and luxurious Plaza hotel, casino and ultra luxury residential condos. You can bet its price per square foot will be much higher than today’s average prices selling at MGM Mirage’s CityCenter of $1600 to $3000 a square foot. Oh, did I tell you that CNBC broadcast those same facts too on September 14, 2007?
- In October, 2007, the land under the former La Concha hotel and the future planned location of the Hilton Conrad-Astoria hotel, casino and residential condos was sold at another record price.
Yes, this very recent land sale continues to demonstrate just how strong the land prices are along the Las Vegas Strip. This land sold for $33.1 million an acre. Wow, these sure are doom and gloom times in Las Vegas considering just three years ago that land would have sold in the $4 to $5 million range based on nearby property sales.
So just think about what these current and strong Strip land prices mean to you as a buyer of a luxury condo along the Strip. Sitting on the fence to buy are you? Well, consider this fact. Sky Las Vegas was built three years ago on land worth at that time approximately $4 million an acre. Today, it’s value would be at least $33 million an acre since it’s located just down the street from the Conrad-Astoria land and is the ONLY luxury residential high rise that’s operational with a Strip address.
So buyers are sitting on the fence with new Sky Las Vegas luxury condos available for sale today in the $500 to $950 per square foot range. Luxury condos on the Strip currently are being constructed in the $1600 to $3000 a square foot range to be delivered in late 2009. Oh, you think these are just sale prices? Guess again. These are actual contracted prices and sales continue to be strong due to major international demand for CityCenter. Bigger surprise? Those price points were based on land prices a few years ago too. Did I mention as that as of today that only 33 Sky Las Vegas luxury high rise condos are for sale?
Oh my doom sayers, Las Vegas is in such a horrible over supply status as the media keep shouting. Wow, sounds like the same luxury condo blood bath in Miami to me. Afterall, the media keep placing Las Vegas luxury high rise condos into the same over supply Miami luxury high rise condo bucket. Just because Miami has at least 58,000 for sale and 20,000 more under construction for sure means it’s in the same over supply category as Las Vegas with its 33 luxury condos on the Strip. Sounds like apples to apples comparison to us.
Likewise, adjacent to the Strip, are a limited number of Turnberry Place and Turnberry Towers luxury condos currently available for sale in the $500 to $950 per square foot range. I can’t wait until 2009 or 2010 when luxury condo buyers complain they missed the 2007 window of opportunity to buy. And they will.
Contact Bruce Hiatt at (702) 456-7080 x201 or visit www.LuxuryRealtyGroup.com to purchase your luxury condo in Las Vegas along or adjacent to the Strip.
Land prices aren’t going down along the Strip as there’s only 4 miles of it and very little remaining to be purchased for future development.
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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