From the AP:
In a city cluttered with condominium construction, Old City 205 aspired to shine as an ultramodern residence for the well-heeled with its zinc and glass facade, loft-style homes and windows that span floor to ceiling.
Too bad no one will get to move in now: The $40 million project in Philadelphia’s Old City neighborhood won’t break ground after the housing market softened and increasingly picky buyers balked at its price tags from $400,000 for a studio to over $2 million for a three-bedroom penthouse.
Brown Hill Development, the company behind the project, noticed slower traffic and decided it didn’t want to be left with unsold units, said partner Greg Hill.
From coast to coast, developers are nixing or delaying condominium projects as home sales decelerate, construction costs soar and lenders start to balk at financing units that might not sell. What’s making it worse is the glut of high-priced condos and too few people who can afford them.
With housing looking increasingly anemic, it’s not surprising that developers are bailing out.
McCabe considers the condo market, especially the luxury end, at risk of a crash. Over the next few years, he sees prices falling by double-digit percentages.