Recent urban trends have brought about new and dynamic shifts in the real estate market, particularly in luxury condos springing up in key cities. As real estate brokers, developers, designers, and investors continue driving the luxury real estate market across America, here are five luxury condo locations to watch out for as they adapt to the times.
A previous blog post here on RealConnex lists Seattle as one of the cities ripe for investments in real estate, particularly in the downtown district. This is because Seattle has seen a huge growth in nearly all sectors in recent years, driven aggressively by massive job creation and an influx of Chinese buyers. It is considered one of the most exciting areas of growth for the luxury condo market in the country.
In fact, the city has more active construction cranes than any other city in America, with 2019 set to see the completion of many of the 30,000 residential units being planned in the city, according to Bisnow. The biggest attraction for luxury condos in the area is that despite rising costs, listings in the Puget Sound region are still lower than those of any other international hotspots. All in all, expect continued growth in the area for the next few years.
Although San Francisco isn’t technically a luxury city, unlike its neighbors Beverly Hills and Bel Air of Los Angeles, its affluent areas — Pacific Heights, Presidio Heights, and Sea Cliff — are extremely well off. In terms of luxury condo growth, San Francisco as a whole has slowed down compared to other cities, but continues to develop in several key areas.
The wealthy Pacific Heights-Marina neighborhood still leads the city’s districts in terms of luxury and ultra-luxury sales. In fact, the district holds the record for the most expensive condo sale in San Francisco in 2017 at $22 million, as specified in an article on Mansion Global.
On the other hand, the area encompassed by South Beach, South of Market, and Mission Bay have dominated the luxury listing market since 2015. The district is expected to grow with the completion of the new crown jewel of the city skyline, the Salesforce Tower, which Business Insider mentioned as set to be the new tallest and most expensive building in San Francisco. It will be open for office, transportation, retail, and residential uses. However, while this district still commands the highest prices per square foot of luxury condos, its inventory remains high and sales have been dropping in the past year.
Miami has seen the construction of hundreds of million-dollar luxury condos in its different districts in the past years as part of the recent construction boom. Its world-class luxury residential units overlook the pristine beaches of the area, and are highly sought-after by affluent foreigners from South America and the Mediterranean.
This flourishing center of commerce and culture continues to have sky-high real estate prices and enjoys an influx of international cash. This is especially true for the Downtown Area, which Discover Homes Miami cites as the most desirable place to live due its proximity to the city’s business and cultural centers. Be that as it may, Vice reports that experts are seeing an end to the luxury condo boom in Miami soon, as the market has been showing signs of reaching its peak.
The same trend that threatens luxury construction growth in Miami can also be seen in New York, where the luxury condo boom saw the construction of 100-story skyscrapers as in the area dubbed as the “Billionaire’s Row” in the Central Park and Midtown neighborhoods. Bloomberg indicated that the slowing down of growth can be largely attributed to supply starting to catch up to demand, as well as tightening of regulations for cash transactions from foreign buyers, which formed a huge bulk of the luxury housing market in New York.
Nevertheless, luxury real estate developers continue to invest in the big apple, with the likes of One Manhattan Square, Luxury Leroy Street and 432 Park Avenue expected to continue the growing in the region.
Finally, Boston is the highest ranked metro in the Northeast in terms of readiness for real estate development, with the city’s higher education institutions, hotel and retail sectors, and life sciences industry boosting growth and development for the area.
In terms of luxury condos, Forbes specified the Four Seasons Hotel and Private Residences One Dalton Street as the project which leads the way. It’s the biggest development in the city since the Hancock in 1976, and it’s slated to be Boston’s third tallest building upon completion next year. Other luxury condo projects such as the Pierce Boston in Fenway Neighborhood and 22 Liberty at Fan Pier continue to buttress the burgeoning luxury condo market in the city.
The luxury condo market continues to shift and evolve, and the aforementioned locations are not alone in bracing for the challenges ahead, whether these are from accelerated growth or a slowing down of sales.
Robert Collier is a surveyor and residential contractor. Knowing
firsthand the difficulties of house ownership, he provides pro bono