Developers ringing up condominium sales in Center City
Natalie Kostelni's article from the Philadelphia Business Journal today...
Center City condominium developers, particularly those catering to the high-end market, are experiencing steady sales activity as the real estate market begins to stabilize and recover.
Though these developers are taking deposits and closing on units, data indicate sales are still considerably off in the five Philadelphia neighborhoods that saw the most condo construction. For example, Rittenhouse Square condo sales fell 61 percent in the first quarter compared with the comparable period last year when 18 units were sold, according to Prudential Fox & Roach’s HomExpert Market Report. Washington Square sales were off by 75 percent in the first quarter, the latest for which data are available. In general, prices are also down.
“Condos are selling better in 2009 than in 2008 but they are selling for lower prices,” said Allan Domb of Allan Domb Real Estate, a condo developer and real estate agent. Domb has two projects — Parc Rittenhouse and the Warwick — close to finally being completely sold out.
The “disconnect” that was driving the real estate market to unsustainable prices is starting to correct itself, Domb said. “Prices are more realistic, and I don’t see us skyrocketing back up,” he said. “I think we’ve settled in a new, healthy market.”
Center City condominium developers, particularly those catering to the high-end market, are experiencing steady sales activity as the real estate market begins to stabilize and recover.
Though these developers are taking deposits and closing on units, data indicate sales are still considerably off in the five Philadelphia neighborhoods that saw the most condo construction. For example, Rittenhouse Square condo sales fell 61 percent in the first quarter compared with the comparable period last year when 18 units were sold, according to Prudential Fox & Roach’s HomExpert Market Report. Washington Square sales were off by 75 percent in the first quarter, the latest for which data are available. In general, prices are also down.
“Condos are selling better in 2009 than in 2008 but they are selling for lower prices,” said Allan Domb of Allan Domb Real Estate, a condo developer and real estate agent. Domb has two projects — Parc Rittenhouse and the Warwick — close to finally being completely sold out.
The “disconnect” that was driving the real estate market to unsustainable prices is starting to correct itself, Domb said. “Prices are more realistic, and I don’t see us skyrocketing back up,” he said. “I think we’ve settled in a new, healthy market.”
posted by Allan Domb at
5:13 PM
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