High-rise sales are down; prices are up

Applied Analysis issued its third-quarter report showing 499 sales through the third quarter, including 149 in the July through September period.

That’s the slowest third quarter since there were 125 in 2020 during the pandemic and 141 during 2019. There were 567 sales in the third quarter of 2023, 798 in 2022, 858 in 2021, 346 in 2020 and 457 in 2019.

While sales are down, those units sold in the marketplace continue to catch a premium.

The average price of units sold in the third quarter was $633,619, a 5.7 percent increase over 2023 when it was $579,147 and is on track to set a record for the year. The price per square foot rose 8 percent over last year to $531, up from $484. The average price paid in the second quarter was $646,494.

It was the quarter dominated by the condo-hotel market rather than units for residential use only.

MGM Signature led the way with 29 sales and an average price of $402,309.

Trump Las Vegas and Palms Place were second with 15 each. Palms Place had an average price of $365,859 while Trump had an average price of $349,200. Trump had 10 sales in the third quarter of 2023 with the average price of $327,500.

Turnberry Place was next with 13 sales and average price of $929,611.

Turnberry Tower had 12 sales with an average price of $528,541.

Sky Las Vegas was next with 11 sales with an average price of $630,073.

Veer Tower had 10 sales with an average price of $705,900.

Panorama Towers had six sales with an average price of $627,000.

The reminder of the 21 towers surveyed by Applied Analysis had five or fewer sales.

One Queensridge Place had five sales with an average price of $1.53 million.

Vdara condo hotel at CityCenter had three sales with an average price of $1.01 million.

The Waldorf Astoria had four sales with an average price of $4.38 million.

1. The Waldorf had the top condo sale in the quarter for $8.5 million, second highest sale in the history of the building after a $9.5 million sale in January. The 46th floor penthouse at the Waldorf has three bedrooms and three baths and measures 3,980 square feet.

Frank Napoli with Berkshire Hathaway Home Services was the listing agent while Brian Nugent with IS Luxury was the buyer’s agent representing the Bickett Ponte Vedra Beach Limited Partnership. The seller was Gerald Niznick, according to public records.

2. The No. 2 condo sale during the quarter was a 30th-floor condo at the Waldorf Astoria that went for $4.45 million. It has two bedrooms and three baths. It’s a unit with north-facing panoramic Strip views. It has floor-to-ceiling windows throughout.

Grant Garcia with Rhome represented the buyer, the Rosemary Martin Revocable Trust and the seller Z-Vegas Strip LLC, according to public records.

Napoli attributed condo sales being down in the third quarter due to people waiting to see what happens with the election and the excessive heat during the summer that kept people away from wanting to view high-rises on the market as a second-home purchase.

“We had an unusually hot summer and people stayed out of town a bit longer, and I feel like as the weather has cooled down the condo showings are starting to pick up,” Napoli said. “I don’t think there’s any lack of desire or any change in the condo market other than a hot summer and an election year. I have been selling real estate for more than 25 years and election years slow down sales a little bit as we get closer to the election. I have no concerns. It’s still a sought-after product, which segues why values are up. Most towers have lower inventory. There are sellers holding firm at their numbers and achieving them and buyers that are seeing value in the product being offered and paying it. The Waldorf Astoria is making major improvements to the building so I think that values will continue to grow in that building. We’re noticing the same at Panorama where they have had upgrades to common areas. Sky Las Vegas is doing well with the opening of the Fontainebleau and the announcements of new construction in that area as well. It seems like things continue to improve not only in the high-rise buildings but in the surrounding areas in which these high-rises reside.”