Luxury Penthouse Condo at 60% off
If there is a sector of the real estate market that was heavily overbuilt during the boom years, it is the luxury condominium segment. Arguably more over built than even the golf communities, the slow bring-to-market times are seeing a glut of new condos from Miami to Michigan and all places in between.
One thing is certain – it is going to be a renter’s market for some time in most areas, and the current thinking is auctions is the way of disposing of this excess inventory. A developer is selling off 19 luxury condos next month in downtown Austin, Texas, with opening bids at 60% off the previous sale prices. The least expensive unit is up for $80k – previously offered at $200k and the penthouse, which was offered at $1,575,000 starts at $600k. The Penthouse is something else – 2,745 sq ft, 360 degree views of Austin and three rooftop terraces.
these are substantial discounts for sure – assuming we have a seller prepared to accept these offers. Most of the auctions I have seen lately – the seller refused to accept the highest bids. We shall see.
The condos are situated at Brazos Place and the auction site is here – Kennedy Wilson.
There are a number of other luxury condo developments still under construction in the area, so those developers will be watching with interest to see where prices end up. Realistic pricing is vital if we are to see some activity in the real estate market – even if this means lower prices – which it certainly will. The amount of property for sale keeps growing and until we get some of this inventory off the books, we are going to be stuck in the mire.
