Las Vegas High Rise Market Picks Up - June 2014
The Las Vegas high rise condo market has recorded fewer than 50 closings per month in the top high rise towers. In April, only 37 units closed escrow. In May we climbed back to 51 units sold through the MLS. We expect to see continued interest in the high rise market, especially as we get closer to the re-opening of the old Sahara. It's expected to debut as the SLS which on Labor Day week-end.
MGM has announced City of Rock, a partnership with Cirque and Rock In Rio. They'll be constructing an outdoor concert arena that will accommodate up to 80,000. Located on the 33 acre parcel at the Southeast corner of Sahara and the Strip, this will bring more excitement to the nearby condos. Allure, SKY, Turnberry Place and Turnberry Towers are all within walking distance. First performances at the new venue are planned for May 2015.
Current Inventory - We still have a large number of condos listed for buyers to choose from. There are 443 high rise condos listed for sale without offers. This includes 8 foreclosures and 8 short sales. If we kept up the pace of 51 closings per month, the current listings would be absorbed in just over 8 months. That's a definite improvement.
What Sold in May? 36 of the condos that sold in May were traditional sales.
Five of the high rise condos that sold in May were foreclosures. At Palms Place studio unit 36-309 was listed for $159K and sold for $152,300. At MGM Signature, studio unit 1103 in Tower 1 was listed for $159K and sold for $157K. Also at MGM in Tower 2 1 bedroom unit 1121 was listed for $245K and sold for $235K. At Turnberry Towers 1 bedroom unit 1104 was listed for $224,900 and sold for $224,900. Turnberry Place, Tower 4, 2 bed/2.5 bath unit 902 was listed for $340K and sold for $294K.
Ten of the high rise condos that sold in May were short sales. This is a definite jump from previous months. Closing prices for the short sale units ranged from #1805 at Palms Place. This studio closed at an amazing $139K. Someone got a great deal at that price. Highest price for a short sale was unit 3203 in Tower 2 at Turnberry Place. This 4007 sf suite was listed for $1.475M and closed for $1.37M.
SOLD Price Analysis -
Lowest price per square foot. Three of the condos that sold in May went for less than $180/sf. Lowest price was unit 303 in Tower 4 at Turnberry Place. This one was listed for $369K when it sold for $360K after 38 days on the market. It was a traditional sale and went for $164/sf. Also at Turnberry Place, Unit 1006 in Tower 3 was listed for $289K and closed for $284,500. This one was a short sale and it came out to $166/sf. Turnberry Place, Tower 4 Unit 1107 is one of the rare one bedroom units that were only built in Tower 4. It was listed at $140K and sold for $210K. This one was a short sale and the closing price was $178/sf.
Highest price per square foot. Only two high rise condos sold for more than $500/sf in May. This is surprising since we've seen a few in the $700/sf price range, especially at the Mandarin. The highest price per square foot was at MGM Signature. Unit 3805 in Tower 3 was a top floor penthouse, fully furnished. It was listed at $285K and sold for $275K or $529/sf. Second highest price per square foot was Tower 1, Unit 902 at ONE Queensridge Place. This 3 bedroom, 3.5 bath residence was listed for $1.975M and sold for $1.975M or $512/sf.
Highest Price Paid for a High Rise Condo in May was Unit 902 at ONE Queensridge Place which sold for $1,975,000. Comingin second was #3203 in Tower 2 at Turnberry Place. Listed for $1.475M it closed for $1.37M. Third most expensive high rose sold for the month of May was also at ONE Queensridge Place. Unit 604 was listed for $1.449M and sold for $1.35M.
CASH is still King in the high rise market. Forty of the condos sold last month were purchased with cash. The buildings where we saw financing includes ONE Queensridge Place and the Martin where developer units are easily financed. We also saw mortgages involved in purchases at Newport Lofts, Turnberry Towers and Allure.
It's encouraging to see financing becoming available in these buildings. Accessible financing could definitely improve the property values of our high rise market.
Highest Sales Volume - The most activity was at MGM Signature where nine condos sold. Second most active was Turnberry Place with six closings. ONE Queensridge and Panorama Towers tied for third place with five closings each.
High Rise Condos Sold in May