The Rise of Condominium Developments
Condominiums are no longer for the retiree and well-to-do. Whether a first-time home buyer looking for a safe place to raise their children or the young professional looking for luxurious living, the growing market of condos offers another option to buyers of every kind. While most may consider condos to be new or extravagant, the fact is condos do not have to be. There is a growing trend of reconstructing rental units into condominiums and the market is taking it in stride. Condo conversions are, however, causing a decrease in the rental inventory in major cities, such as Las Vegas, Phoenix, and Miami. This is not stopping developers, however, as the condo conversions are priced affordably and are being snatched up by first- time homebuyers everywhere.
Developers are purchasing run-down apartment buildings in properties that are close to jobs and schools, converting them into affordable condo units, and refurbishing them with more extravagant upgrades, such as carpeting and stainless steel appliances. They then will revamp the common areas and put them on the market. To help them sell, many are including incentives and even offering to pay the closing costs for buyers. Many first-time homebuyers and retirees are purchasing them as they feel more secure. Luxurious condos are also on the rise.
While the ownership of these are centered more around a buyer looking for a quality lifestyle, extravagant amenities, and great locations, there are many that are willing to pay the price. In Florida last year, a 4,800 square foot condominium was sold for $4.65 million dollars. In 2005, California experienced a 90% jump in condominiums priced over one million. There were 1,677 condo sales, all in the one million dollar price range. Many of these luxury condominiums are located in areas of wealth and many have top-notch views. Amenities in such luxury condos may include quality furnishings, such as appliances, granite counter tops, and window treatments. Many luxury condo buyers like the fact that the properties are secure and feel their items of wealth are protected in this type of environment and they don’t have to pay the added cost of security. Condo hotel developments are on the rise in larger cities, as well. This type of luxury living affords one the opportunity of living in their own condominium with all the amenities of hotel living, such as room service, maid service, and concierge service.
Research shows the average condo hotel buyer to be between the ages of 35 and 50 years old and many simply are purchasing them as either an investment property and vacation property. The 576-unit condo hotel, the MGM Grand in Las Vegas, sold all its units during its preconstruction stage within a two month period. In other areas, such as Florida where the first condo hotels were developed, sales are doing well. In many of the areas, such as Miami, there isn’t any undeveloped land available. Therefore, developers are simply taking advantage of the market in any way they can. These condo hotel sales are hot and when they are not on the water, they offer luxurious living at an affordable price. There are several reasons why many prefer condominium living over a single-family dwelling. Many consider themselves to be living in a community within a community. While there may be strict regulations or rules in the condominium development, most find themselves feeling safer, as well as more involved, than they were when they lived in a single-family dwelling. Condominium developments generally charge a monthly fee to all owners to take care of the outdoor maintenance, as well as security of the building and upkeep of the common area.
This allows the condo owner to simply enjoy all the amenities of condo living. The fact is condo development is on the rise all over the United States and Canada and will continue to do so as long as there are buyers. These condo buyers are simply looking to purchase the lifestyle of condo living. For many, feeling more secure in an affordable home, being pampered by a doorman, and living close to the city is what condo living is about.
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