Monday, October 10, 2005
Loft Pricing: 401
What does cost per square foot mean in the loft buying world?
I talk about this non-stop.
There is a strange change in the loft market lately. Traditionally, buying a loft before construction began (pre-construction) was a way to get a substanially lower price on your loft than if you bought a loft at the "market rate" as a resale.
Now it seems that some of the developer's have rejected the idea of selling lower priced lofts pre-construction and are selling them for the market rate even though they aren't complete. It's too early to really speak on this subject, because maybe by next year, pricing will have continued to climb and what appears to be higher prices now will seem like major discounts upon completion. I guess we will have to see if the market supports this.
One of my clients reserved in the Moon Brothers Carriage lofts for around $140/square foot and another loft in the Dorsa lofts for about the same. I'm starting to see pre-construction pricing starting at $169-200/square foot and wondering if there will be any room for appreciation by the time the properties are done.
These are the mysteries of life that one must struggle with daily. As a specialists in lofts, we just have our own way of seeing the pricing of lofts. Talking to developers though, they always seem so sure about 'the plan' and 'the price.' I really do hope they're right. Of course, when one tries to resell or even flip one of these lofts, the market will have the final say. And where will the developer be then?
We commend the developer's that have stuck to the traditional approach. People who commit early to a project should get a better deal.