Quote:
Originally Posted by mhays
I don't get your point about appreciation. Why would building high-end condos increase the values of lower-priced condos? The only instance that makes sense to me is penthouses helping mixed-income buildings pencil.
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I have recently read, and, I cannot remember the source (sorry), that in both NYC and Toronto, the upper end high rise condo market is appreciated the market price of the entire real estate sector.
I suspect that sales of $5 million condos inflate the price of the $1 million condos which raise the average price of single family residences.
If a very luxurious high rise condo was built in Denver and the condos sold out quickly to internationals, then wanna be's would want to flock close to them- a kind of reaction to the "gentrification" of new residential construction that is occurring in a few US and Canadian cities.
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