HP readers since last fall predicted that all those Vegas condo projects, so nicely marketed with their billboards, stock-art photos of the wine and cheese crowd and magazine ads, would never see the light of day.
So here comes the light of day and .... drumroll please... you got it, a bunch of cancelled condo projects.
Same thing's gonna happen in Phoenix (remember the "Wine Lofts") and Miami, and DC, and San Diego, and Denver, and ....
FIRST, the Icon Las Vegas was derailed, then the Hard Rock Hotel and Casino expansion and now the Curve. What's up with Sin City's luxury high-rise condo market?
In the last several months, at least seven marquee Las Vegas condo projects have either been canceled or put on hold, causing a dust storm of rumors to swirl through the city and elsewhere as investors wonder if this is a harbinger of a slowdown. The reasons for the projects' retreats don't bode well for the larger picture: lack of buyer interest and escalating land, construction and labor costs.
May 02, 2006
Hard luck in Las Vegas - Highrollers are folding in Sin City
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3 comments:
bubblicious. These specuvestors need to realize that the 'PARTY' is OVER.
David
Bubble Meter Blog
You'd think any remaining condo towers would have all the others' customers lined up. Yeah right. Anyway, the real reason these deals have gone tango uniform is because interest rates are drawing away all the financing. Well that and they are stupid and unecessary.
Rising rates may be part of the reason but the prices and terms of these things were just ridiculous. I don't know why anyone would have bought one of these - especially as an investment. Here's an example of what was offered to me by the MGM Grand LAST YEAR:
Studio loft, less than 500sq ft - over $450,000. MGM could rent it out for you when you weren't using it but they'd charge you like 40% of the rent as a service fee. Oh, and did I mention the outrageous HOA fee?
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