By Larry Hotz, All Denver Real Estate
“City Condo Prices: Sky’s The Limit”.
That was the lead headline this morning in The Denver Post, Denver’s daily newspaper. Despite a softer market outside the downtown area, developers are raising prices on new condo projects downtown.
Dee Chirafisi of Kentwood City Properties is sometimes called “the Mayor” of Downtown Denver. She meets are greets about every third pedestrian as she meanders the sidewalks of Lo-Do. She is also the top selling Realtor in those parts of the city and a listing broker of the 51-story tower
at 1401 Lawrence Street being built by Great Gulf Group.
“It is typical of any (new) project to raise prices”, Dee told the Post. She says that way previous buyers are happier with their decision to buy early. They are then more likely to help spread the good word.
It is a marketing technique that suburban builders used when the market was better. After all, the technique only works if buyers continue to buy at the new, higher prices. And, so far, it appears that buyers are paying more for new and even resale condominiums in the heart of downtown these days.
Many other downtown condo projects saw higher prices as units sold. Pinnacle near City Park and Wynkoop in Lo-Do are just two recent examples.That is a far cry from high-rise condo projects in cities hit hard by a real estate recession. LA Vegas and Miami have seen developers slash prices when they needed some additional sales. That does not seem to be the case in Denver.
Other downtown condo projects have had price increases recently. Komorebi has increased some prices from $500 per square foot to $700. That is not uncommon in the hot downtown market. Resale prices have not generally increased as dramatically. That may be due to the high demand for “brand new”.
“Some people want to pick their own colors and be first to use the bathtub”, said popular downtown broker, John Ludwig. “New always commands a premium in price.” John specializes in helping buyers find the right condominium for them downtown. Once found, he is an effective Buyer’s Broker when it comes to negotiating the most favorable, price, incentives and terms.