Luxury Real Estate News - Luxury Condo Development in Houston Cancelled - Goldman Sachs Ordered to Justify Bonus Payments - London Luxury Property Prices Down 12% From 2007 - Colorado Luxury Property Auction a “Success”

Turnberry Towers in Houston

Turnberry Tower, a 34 storey luxury condominium development in Houston has been canceled.

Turnberry’s $3 million sales office was closed on Monday. The Tower had originally been planned to offer limousine services, maid suites and two, 15,000 sqft homes. Relatively speaking, one would have expected an oil-based economy such as Houston’s to be withstanding the current financial storm a little better than much of the rest of the US, but even here the credit crunch is taking it’s toll. Turnberry is a well established developer with substantial successes and completed high-end condominium projects all over the US, and has pledged to return all deposits already taken with appropriate interest accrued.

Turnberry Associates said the 184-unit development planned near the Williams Tower has been “discontinued” as turmoil in the financial markets has caused traditional construction lending sources to dry up. The Houston Chronicle

Investment banks asked to justify bonuses

It would appear I am not the only one to be wondering if the bonuses planned by many Wall street investment banks this year is an appropriate use of the recent government capital injections - or if it is enough to kick-start the sluggish NYC luxury property market. Representative Henry Waxman, chairman of the House Committee in Oversight and Government Reform wrote letters yesterday to nine firms after announcements that there is an intention to pay out $108 billion in employee compensation, much of it in the form of bonuses - almost the same amount as paid out in 2008.

I question the appropriateness of depleting the capital that taxpayers just injected into the banks through the payment of billions of dollars in bonuses, especially after one of the financial industry’s worst years on record. Henry Waxman The Boston Globe

I for one will be interested as to whether Mr. Waxman’s bite is as strong as his bark.

Luxury Property prices in London down 12%

Docklands Penthouse London

According to Liam Bailey, head of residential research for Knight Frank, luxury property prices in London are down 12% from last year’s levels, and The New York Times is selling a nice 2 bedroom condo in London’s docklands for $1.4 million.

This two-bedroom two-and-a-half-bath penthouse apartment overlooks the River Thames on the Isle of Dogs, part of London’s Docklands area. The living area has a double-height ceiling and oversized windows with views of the river. Above the living room, on the mezzanine level, is a cinema room. A private roof terrace has a container garden and a gazebo; it also looks out over the river. Both bedrooms have en suite bathrooms, and there is a half bath off the foyer. The apartment runs the entire length of the sixth floor. New York Times

Luxury Real Estate Auction in Colorado

We recently reported on an up-coming sealed bid auction of a number of luxury properties in Colorado. I spoke with Scott Franklund, the organizer of the auction yesterday, who reported that the auction had been “successful,” whilst being rather cagey about actual prices. This was the company’s first sealed bid auction and Mr. Franklund confirmed that they will certainly be running more in the future. We both agreed that realistic pricing will lead to succesfull sales of luxury property, almost regardless of the current market conditions. Not all properties up for the auction sold, although there was an approximately 50% close rate. Somerset Manor, reduced in price from $7.3 million to $ 5.3 million, was one of those that failed to sell.

Luxury Real Estate Auction in Colorado