WSJ Says Miami Has 57 Months of Condo Inventory To Sell
Posted by Bruce Hiatt - November 7th, 2007
Categories: High Rise Condos
The Wall Street Journal today said that Miami’s inventory of available condos for sale is at least 57 months. Think that’s true for Las Vegas luxury high rise condos? Some of the media want you to think so. Not even close.
The luxury high rise condo inventory for sale along the prime Strip and near Strip areas of Las Vegas is a fraction of the inventory Miami has. For example, consider the ultra luxury Sky Las Vegas residential high rise condo property. Only Sky is located on the Strip in the prime area. That’s correct, a total of 1 high rise tower with a Strip address.
The total number of Sky luxury condos for sale as of today is a gigantic 35. Let’s see. That’s about three weeks of inventory in a strong market and about 4 months of inventory in a soft market. Doesn’t sound like Miami to me but the media keep saying Miami and Las Vegas are equals. As long as the media keep distorting the Las Vegas luxury condo picture then 4 months on market becomes months and more months. Shouldn’t the media have to pay for such damage to the Las Vegas luxury condo sellers with such incorrect reporting? Interesting question. At least CNBC got it right with their recent broadcast about how strong the Las Vegas luxury condo market really is.
You think by just showing the one luxury high rise condo on the Strip in existence that I’m painting an unfair comparison? OK, let’s go to the prime Strip area and expand it to include the adjacent Strip luxury condos for sale counts. First, let’s look at the massive over supply we have in existing hotel condos for sale.
For luxury non-restrictive stay hotel condos currently on the market, we have a total of 148 across 3 towers. That’s it folks and those numbers are decreasing each week. That particular condo hotel is the beautiful ultra luxury MGM Signature and there are 8 under contract today. Sales are increasing and supply is reducing because smart buyers are grabbing the deals while they can. For days on market in a normal market for hotel condos, this would be about 4 months of inventory and in this slow market it is about 9 months or less. However, if the media keep distorting the Las Vegas luxury condo picture then 9 months will become 12 or more months.
Next, let’s count the luxury the luxury high rise condos in the near-prime Las Vegas Strip area. We have a total of 212 on the market. We have the luxury high rise Turnberry Towers with a total of 83 on the market across 2 towers. Turnberry Place, with its famous Stirling Club, has 127 for sale across 4 towers with 3 under contract. Park Towers, a very high end luxury condo high rise, has a whopping total of 2 on the market. So, we have a grand total of 212 Las Vegas luxury high rise condos in the prime Strip area available for sale. In a normal market, that would be about 6 months of inventory and in this slow market it will be about 9 to 12 months. If the media keeps hammering the Las Vegas luxury high rise condo market, then the months on market will extend for some time. It isn’t a fair picture.
See, the facts are quite a shocker. The media just won’t tell you what is really going on except for CNBC’s honest reporting of our luxury condo market. The media rather focus on getting ratings and selling magazines and newspapers by promoting the doom and gloom. Each day when such inaccurate reporting takes place, it has to be one of the factors in taking money out of the luxury condo sellers pocket. Such damage is irresponsible and incomprehensible but the public is not crying out for accurate real estate reporting. They need to start shouting now.
Did I tell you that sales continue very strong for luxury condos at MGM MIRAGE’s CityCenter in Las Vegas? They are and record prices are being set. Wait until those Las Vegas luxury condos get delivered in 2010. Then, we shall see how well the existing luxury condos along the prime Strip area perform since their price per square foot is a bargain in comparision to new construction prices now.
No wonder the media don’t want you to know these facts. For sure they don’t you to know Strip land prices have increased 8 fold over the past three years and no softening in sight.
Want to know more about these limited supply luxury high rise condos and hotel condos for sale in Las Vegas? Call Bruce Hiatt at (702) 456-7080 x201 or Simon Chen (702) 456-7080 x202.
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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