From the Philly Inquirer:
Bidding opens for waterfront luxury condo site in Phila.
New York auctioneer said yesterday that it would take bids for the Old City site of a proposed 33-story, 236-unit luxury condominium development that has not progressed beyond the planning stage.
The waterfront site is at 412 N. Front St. It is already approved for a project of nearly 322,000 square feet of residential units, 4,095 square feet of retail space, and 65,049 square feet of common space.The site is owned by 412 North Front Associates, a partnership that included developer CNO Properties of Philadelphia. The partners declined to comment about the sale, which comes amid softening in the city condo market.
Kevin C. Gillen, a Wharton School economist who monitors the local housing market, said the site’s waterfront location was a plus because the neighborhood had not yet been oversaturated with condo developments.
“We haven’t seen the level of luxury condo development in Old City that we’ve seen in other parts of Center City,” he said. “The essential fundamentals of the location appear to be good.”
However, Gillen said, the overall residential real estate market is a challenge.
“We have flat prices, rising inventories and dropping sales,” he said. “The numbers are even worse for the condo market. We haven’t seen any serious declines in prices.” He said the turnover rate for condos was about a third of what it was last fall.
The lehigh valley is getting killed with foreclosures, up over 30% and rising. Our inventory of homes was up 70% in March. Homes are dropping prices faster than gas is going up. By the end of 2008 our prices will be pre 2002 or worse. These commuters spending 3-5 hours a day driving are getting killed with rising prices and negative equitity. That spells disaster.
Commuters are better off sinking their money into shore real estate if they are going to drive 4 hours a day. I bought a shore house (duplex) through McCann Realty (www.mccannrealtors.com) in Ocean City and rent the bottom half out year round, increasing the price in the summer.I’m lucky enough to rarely see my renters. I work in Cherry Hill and the commute is less than an hour. Plus the school district is strong for the kids. I can’t imagine that a young couple with more disposable income than me can’t do that and be way ahead of the game when they start a family. Shore property will never take that kind of hit. I’m going to keep the house and buy a SFH in town next year after a refi…
#2 You’re not fooling anyone here.
Yeah, nice try #2, but I have a home in Ocean City and the town has been waaaaay over “duplexed.” Rental properties sat empty all summer. It’s a terrible investment.