Luxury condo market sees tight inventory levels
You see construction and buildings everywhere throughout Houston for future high-rises, but that doesn’t mean that there is a vast amount of inventory of properties to choose from when selecting a new place to reside.
It’s not just Houston with an inventory that is disappearing under our noses in the luxury condo market.
According to MarketPlace.com’s article, “Prices for luxury condos under pressure in top U.S. housing markets,” New York condo buyers are taking notice.
It reports that about half of the Manhattan luxury condos were sold solely from new development floor plans, and although the ultra-premium over $10 million condo market in 2016 saw a 5 percent sales decrease, the smaller and less pricey premium condos in New York, especially those downtown, go fast and are in short supply.
The article also mentioned that Chicago sales at the higher range of the condo market have not decreased with a recent high sale of $13 million, and the upscale condo market is expected to continue 2016 trends.
Nat Heston, vice president of Development Services at Sudoff Companies, has seen available inventory continue to decline, reflecting a very low inventory on its properties up into the second quarter of 2018, he said.
Several factors are fueling the fire behind the demand, including empty-nesters, no maintenance, a lock-and-leave lifestyle and the expansive floor plans — as well as the safety and security of the properties.
“There’s definitely a need for more condos in Houston. In the last couple of years, luxury condos, which are priced at $750,000 and up, have a vastly less amount of inventory,” Heston said.
Building by building, sold-out units and delivering units are part of a day’s work.
The Riva at the Park will have its first closing by the end of October, with 100 percent of its 29 units sold.
The Wilshire, located near The River Oaks District from Pelican Builders, should also be delivering units floor by floor in mid-October. This property with 96 units is estimated to be sold out by the first quarter of 2018.
The River Oaks, with 79 units, is also slated to begin delivering in the first quarter of 2018.
One by one, buildings are being completed and nearly sold to capacity.
Look for The Mondrian in the Museum District to deliver its 20 units by middle of the year, as well as The Sophie at Bayou Bend with 39 units in the fourth quarter of 2018.
John Marr, veteran high-rise real estate agent and sales associate with the Sudoff Companies, said the demand is high in Houston for luxury condos.
“The Riva sold 50 percent in 90 days and is now sold out,” Marr said. “In Houston, for many, many years, it was not condo friendly, but people are turning the corner for the lock-and-leave lifestyle and low maintenance fee. There are so many advantages.”
It doesn’t seem to be slowing down either, Marr said. He included The Arabella and The Giorgetti as buildings to watch in terms of limited inventory.
“The Houston market is not going down. I’m seeing people coming in three-fold effect the last several years, and a boom in new construction.
“The market is going to go up,” said Marr.