Since the end of 2016, 15 new residential high-rise have launched (or are in the process of launching). Notable buildings include:
The supply of luxury Houston condos has increased by more than 400%.
In nearly all cases, the developer sold on spec (where the client didn’t have the ability to evaluate their views, quality of build out, finishes, where they park, where their guests park, etc.)
As you can imagine, not all developers, views, HOA governance, guest parking, etc. are living up to expectations. (As a note – we really like 3 of the new construction buildings – contact us for details).
In one building’s case, the developer offered US Visas as part of the package. Quite a few buyers cared more about qualifying for the visa than they did about resale trends.
In 5 different cases so far, units have sold under “the developer’s price” – in one case the total sale price was over $650,000 under the original price.
Some of the buildings are wonderful, but several of them have material risk of view loss and other opportunity gaps.
In 2018, as more inventory comes online, we think the winners will separate from the losers. We believe quality buildings with quality staff in quality locations with quality views will do well.
However, we believe that disadvantaged buildings (and disadvantaged units) will take a material haircut. We believe many individuals who bought directly from the developer sales staff with no representation, comparable pricing analysis and/or thorough inspection will take a substantial loss upon selling.
If you’re looking at new construction, luxury condos – contact Paige Martin for a candid conversation about New Construction Luxury Condos In Houston.