07 High/Mid rise Condo’s numbers blow 06’s numbers out of the water.
Real Estate June 28th, 200707 High/Mid rise Condo's numbers blow 06's numbers out of the water.
In 2006 many people who were observing the market in Las Vegas weren't impressed by the numbers. Allot of people thought it was just a small faze that was going to blow over by the next year, they were 100% wrong. I know there have been many articles that focus on the negative side of the Las Vegas but what people don't mention is why some of the projects failed and why so many have been placed on the re-sale market in the last 18 months. These are my thoughts about what is and has actually happened and happing. Lets start with some of the projects that couldn't get off the ground. Spanish Towers, Icon, W, Conradmajestic, and a few others. All of the mentioned developments were either never finished or didn't even break ground. A real contributing factor that allot of developers didn't consider or ignored was the cost of their future residence, they were trying to sell these property's for what they would be worth in a couple of years rather than pricing them according to the market. By doing so they scared away allot of people because of the afford ability factor.
Investors were also scared away because there were so many hitting the re-sale market as soon as they finished. One thing that i have personally noticed is that the majority of the that have been placed on the resale market aren't that desirable of a property to begin with. For example there are several Soho Lofts and unites for sale currently which gives the feel that the Las Vegas market isn't doing so well but people also need to think about why there are so many of the same property's unites now for sale in such a short period after being completed. Soho Lofts is located in a part of the strip that is far away from all the action and the structure isn't that nice to look at either. on the other hand is further down the Strip than Soho Lofts but it also isn't in a real happing place on the strip, it's located next to Circus Circus. Across the street from Sky there is a huge development that is being constructed that should take about 2 years to finish, so if I lived there i wouldn't really want to stare at cranes after paying close to a million dollars either, i don't blame them for trying to get out. Another factor that negative articles forget to mention is large investment groups purchased allot of these property's in bulk to get a better deal and now that they are realizing that the developments they bought into won't actually produce the type of results they were looking for until the rest of the construction from more desirable locations catches up, so they are trying to sell.
If the market was as bad as people portray it to be i don't think MGM Corp would be building multi billion dollar projects and acquiring land like crazy. People need to take a step back and think about what is actually happing here in Las Vegas because this city's new market is here to stay and will only become more profitable in the future. is currently building here in Las Vegas and has 2 beautiful golden towers that will be completed by 09, one thing that continues to upset me is when i hear people say how has tried to build here for so long and now he's finally done it, this is wrong what people don't understand is was letting the market become ripe so when he entered it he could become as successful in it as possible. People like don't build to lose they build to win and win Big. The Las Vegas market is more of a long term investment that is not being utilized in that way. It's almost like all the home flippers bum rushed the Las Vegas market in hopes for a large quick return that can not happen at this point because of all the other more desirable property's that are currently being built. Most High/Mid rise Condo developments have investor programs that can be taken advantage of like Condo resort programs that allow the owners of a to enroll their unites into programs that will rent them out for short term stays. I stand behind the High/Mid rise Condo market 100% because i can see what is actually happing and that is part of the reason i write these kinds of blogs so ordinary people can better understand this amazing opportunity and hopefully get involved.