We reported on this over a month ago. Nice to see Time magazine catch up... Wonder what kind of screaming deals you can get today in Vegas compared to 6 months ago?
Now that several high rollers in the Las Vegas condo-hotel game, including luxury properties linked to Michael Jordan and Ivana Trump, are either folding or selling their holdings, a growing number of players are losing their taste for big bets on high-rise, residential real estate development.
Over the past two years, as high-rise fever spread across town, prices for the luxury apartments ballooned, fetching as much as $500 - $1,000 a square foot— or up to $1.5 million for a one-bedroom— at the peak. Buyers, mostly interested in flipping them for quick profits, eagerly anted up five-figure down payments, while developers planned more than 70 luxury towers holding a total of about 43,000 units on or near the Strip and downtown. But the intense competition for the city's limited supply of contractors sent construction costs skyrocketing 30% last year, just as lending policies tightened, interest rates climbed and sales started to slow.
Currently, just 18 projects are underway, and nervous developers have called off three high-profile projects over the past seven months.
"The days of the two guys from the East Coast or Canada coming into town and promoting a condo development with a website and a dream are over.”
January 26, 2006
Posted by blogger at 1/26/2006