Sep 2009 21

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It certainly seems as though 2009 has been the year of the Boston condominium auction.  Thus far  Longwood Towers, The 1850, the Nouvelle and the Bryant (although no officially announced, yet) have been put up for auction.  With the Natick Nouvelle Auction set to kick off and registration in full swing many are guessing — “Which luxury condo building will be next?”  While no official word has been released slow sales would suggest The Residences at the W Boston and 45 Province as the auction block’s next victims.

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The W remains only 15% under agreement and with those residents set to move in December something drastic must be done to avoid an auction. Despite sales troubles the pricing has remained firm at over +$1000/sqft.   While such pricing is typical for new construction in Back Bay and Beacon Hill,  many buyers have a hard time paying the same amount per square foot to live in the  Theater District.  Sure the hotel will feature Jean George’s restaurant Market, but that is not enough to help out sales.

The formula for sales is simple – Create a good project and price it right.  That means taking location and market times into serious consideration.  It all comes down to pricing.

The same can be said of the downtown project 45 Province. Additionally, those who have already purchased with expectations of an easy rental investment that would command a high price are shocked that their expected $7500 2 bed/ 2 bath unit remains vacant even at a much lower $5000 asking price.

Only time will tell.

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