Kings Of Vegas

Vegas Condo Market Cools Down

January 26th, 2006

Looking for a condo in Vegas? Good news on that front as interest rates, lack of construction crews and overbuilding are cooling down the Vegas condo market.

Even George Clooney’s Las Ramblas is scaling back plans. Messages left by KingsOfVegas.com inquiring on what has changed have not been returned.

From Time.com

Now that several high rollers in the Las Vegas condo-hotel game, with properties linked to the likes of Michael Jordan and Ivana Trump, are either folding or selling their holdings, a growing number of players are losing their taste for big bets on high-rise residential real estate development.

Over the past two years, as high-rise fever spread across town, prices for the luxury apartments ballooned, fetching as much as $500 to $1,000 a square foot—or up to $1.5 million for a one-bedroom— at the peak. Buyers, mostly interested in flipping them for quick profits, eagerly anted up five-figure down payments, while developers planned more than 70 luxury towers holding a total of about 43,000 units on or near the Strip and downtown. But the intense competition for the city’s limited supply of contractors sent construction costs skyrocketing 30% last year, just as lending policies tightened, interest rates climbed and sales started to slow.

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