Quote:
Originally Posted by CANUC
Well, IMO I believe the prices are actually quite reasonable. First the comparison must be the old adage apples to apples and not condo’s to suburban homes. But if we are going to compare apples to oranges lets look at one example. On the corner of Tatum and Lincoln there is a development called Montecilla Villas, which are described as ‘from the low 2 millions’. They are two floor, stick and wood construction and in reality are nothing more than town-homes. Anyone who buys one is not looking for amenities since Paradise Valley restricts retail within its boundaries. So what are they looking for; image, exclusivity, views?
Now lets look at some the items discussed, exclusivity; you can’t get much more exclusive than living in the tallest residential building in the state of Arizona (at least for now). Amenities; an entire self enclosed community with exclusive access to a pool, spa, game room, meeting room, community room, café, concierge service etc, etc. In the center of the city minutes from everything, direct access to light rail, sporting events, concerts etc, etc. Views; it’s a high-rise. Image; this is far too subjective, what image is the individual looking for? What image do you have of someone who buys a two million dollars town-home in Paradise Valley and what image do you have of someone who buys a million dollar condo in downtown Phoenix…its to subjective.
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you just contradicted yourself several times. You first said you cannont compare a high rise with suburban homes, then you proceeded to do just that. You also asked if they were being purchased for image and exclusivity... yes and yes. You told us to compare apples to apples, and then compared apples with oranges, two completely different beasts. Phoenix has such a small stock, there really is nothing to compare to. Try using a different city of comperable size, such as San Diego, Chicago, or Seattle. Chicago's most prestigious addresses will fetch prices as high as 10 million for a nice condo, but at the same time you can buy something in a just as prestigiuos neighborhood for sub 200K. It's all about stock, same with San Diego, just on a lesser scale. Prices in Phoenix will come down, and there will be a wider range of prices when someone builds a building with less amenities, or in a crappier location, while the prices on full service buildings will continue to rise.