Tell me this isn't working anymore... But then again, vanity, stupidity and corruption go hand in hand... The perverse corruption between developers and realtors, and this type of payola, will be fodder for the Senate 2008 housing bubble hearings...
Hoping the Sizzle Will Sell The Steak in Condo Slowdown
At a party in Fort Lauderdale last month, guests in clingy cocktail dresses grooved on stage with singer Wyclef Jean and even tried to pull off his black-and-baby-pink striped tie.
A week later, in Las Vegas, party-goers attended a reception hosted by actress Pamela Anderson, who was surrounded by a small army of models dressed in black bikinis, white hard hats, tool belts and yellow "Do Not Cross" construction tape.
The latest dispatches from the Hollywood glamour circuit? No, it's real-estate developers wooing real-estate brokers and potential buyers of high-end condominiums.
The growing glut of expensive condos is pushing high-performing real-estate brokers and deep-pocketed potential buyers onto the "A" list.
By supplying them with coveted party invitations and celebrity access, developers hope to reduce the backlog of high-priced luxury condominiums before rival developers can flood the slowing sales market with even more new properties.
Developers are going all-out -- with celebrities, showgirls, circus performers and fireworks displays worthy of the Fourth of July. Sales incentives ranging from alligator-leather-covered notepads in Manhattan to $10,000 diamond-encrusted cuff links in Fort Lauderdale are dangled before guests.
In Fort Lauderdale, Las Vegas and Manhattan, an estimated 167,600 luxury units are due to hit the market in coming months. In Las Vegas, where 62,600 new condo units are planned, there's greater pressure because projects often are larger and developers can't get construction financing to build without selling a certain number of units in advance. Three condo projects already have been canceled and a half dozen are being re-evaluated in light of slowing sales.
Developers say the parties are a bargain considering the prices of the condos, and they generate far better returns than dropping the prices of units does.
May 31, 2006
Posted by blogger at 5/31/2006