High-rise resale market remains strong

Led by a $6.5 million cash sale of a penthouse at Turnberry Place on May 5, Las Vegas had its most-ever high-rise resales to start the year.

The 293 resales during the first quarter on the back of a record 1,161 resales in 2021 is quite a turnaround from 2020 when there were 505 sales at the city’s 21 high-rises tracked by Las Vegas-based Applied Analysis. The question is whether that trend will continue with rising interest rates and a declining stock market.

The supply of units on the market is dwindling. There were 469 units on the market at the start of the second quarter in 2021. The high-rise market had 252 units at the start of April with the average price at $1.03 million and price per square foot of $721.

Top resale in 2022

The top sale in 2022 was a three-bedroom penthouse unit on the 38th floor of Turnberry Place. It has 8,205 square feet on the inside and more than 10,000 square feet when private terraces are included. It closed on May 5. Originally planned for six bedrooms and eight baths, the floor plan has been modified to accommodate a living room, theater, wine cellar, palatial primary suite and expansive balconies, according to listing agent Cristine Rosa Lefkowitz with Berkshire Hathaway HomeServices Nevada Properties. She was also the seller’s agent. Richard and Polly Oas of California were the sellers. Turnberry Two Holdings was the buyer.

“The Las Vegas luxury high-rise market continues to be in high demand,” Lefkowitz said. “Most buyers are looking for premium views and amenities. The ability to lock and go is priceless. Luxury high-rise buildings are the best product for the affluent clients looking to establish residency in Nevada, especially when they have multiple residences elsewhere.”

The 293 sales in the first quarter falls short of the more than 300 recorded in the second, third and fourth quarters of 2021, but it surpassed the first quarter of 2021, when there were 224 resales, by 31 percent, according to Applied Analysis.

The average price of units sold in the first quarter was $581,735, some 7.5 percent higher than the first quarter of 2021. The $477 average price per square foot was 17.7 percent higher than the first quarter of 2021.

MGM Signature, a condo-hotel property, led the way in first quarter resales with 39, up from 24 during the first quarter of 2021.

MGM’s strength was part of a strong showing of the condo-hotel market. The average price of MGM units sold was $386,609, a 60 percent increase over the $242,013 during the first quarter of 2021.

Palms Place condo-hotel tower had 25 sales, up from 13 in the first quarter of 2021. Those units, which benefited from the reopening of the Palms in April, sold for an average price of $332,756, a 34 percent increase over the first quarter of 2021.

Trump Las Vegas recorded 24 sales in the first quarter, up from 20 a year earlier. The average price of $360,367 is 65 percent higher than the average price of $219,375 a year ago.

Among condo residential towers, Juhl made a big leap with 33 resales, up from six during the first three months of 2021.

Panorama Towers condos had 25 resales, but that was down from 32 in the first quarter of 2021.

Veer Towers in CityCenter had the sixth-most resales during the first quarter at 19, up from 11 over the previous year.

Those units also had strong price appreciation with the average price at $842,245, a 41 percent increase over $598,364 in 2021.

Turnberry Place had 18 resales, down from 25 in 2021. The average price of $1.01 million was 27 percent higher than 2021.

Turnberry Towers had 17 resales, down from 19 in 2021. The average sales price of $556,406 was 27 percent higher than 2021.

Among other properties, the Waldorf Astoria, which is a hotel on the lower portion of the building and condos above, had 10 resales, the same as in 2021. The average price of $2.15 million was down 0.7 percent from 2021.

One Queensridge Place had seven resales, down from five in 2021. The average price of $1.7 million was down 1.17 percent from 2021.

Park Towers had one resale after three in 2021. That unit sold for $950,000.

Other top sales in 2022

■ The No. 2 sale of the year was for $5.6 million at One Queensridge Place, according to the Multiple Listing Service. The unit was sold without being listed by Anthony Spiegel, a Realtor and broker with the Ivan Sher Group of Berkshire Hathaway HomeServices. The unit has four bedrooms and measures 6,404 square feet. Spiegel also served as the buyer’s agent.

■ No. 3 on the list was another listing by Lefkowitz, this one for $4.39 million at Turnberry Place. The five-bedroom penthouse measures 5,609 square feet. David Gavic of Realty One was the buyer’s agent. It was a cash sale.

■ No. 4 was a three-bedroom unit at Waldorf Astoria that sold for $4.35 million. It measures 2,998 square feet. It was a cash sale. Lee Packer of eXp Realty was the listing agent and Zion Lovingier of Listing Masters was the buyer’s agent.

■ The No. 5 sale of the year was for $4.1 million at Waldorf Astoria. The two-bedroom unit measures 2,998 square feet. Michelle Manley of Award Realty was the listing and buyer’s agent.

State of market

Spiegel said while the luxury end of the high-rise market has been strong, the downturn in the stock market could trim some sales going forward in 2022.

“The equity markets are really rattling the luxury buyer at the moment,” Spiegel said. “A lot of these buyers have portfolios and are starting to feel some real pain.”

Interest rate increases, which have surpassed 5 percent, will have a bigger impact on high-rise sales for those in the midtier market and parts of the entry-level luxury market, Spiegel said.

“Interest rates are a big concern as they start to move up quickly,” Spiegel said. “It’s not going to impact the ultra-luxury market where most people are paying cash.”