Yesterday I viewed a penthouse that just came on the market. The unit, #1102 at The Gregory, is listed at $2,350,000. This unit is 2400 square feet and includes a wrap-around terrace that adds living space. With two bedrooms and a spacious den, this unit is very open and great for entertaining. The kitchen has been remodeled and the light gray palette throughout this unit makes it very inviting. I think the price, at $2,350,000 is right about where it should be because unit #1202, directly above, sold last October for $2,400,000. At the time, I thought the buyer paid a little too much for that property. Given the cost of the remodel in unit #1102, and the square footage being just slightly less, I think the $2,350,000 asking price is reasonable.
In the $3,000,000 and up market, two units stand out. The penthouse at The Strand, Unit #1301, is $3,550,000. You can check out this unit at www.PortlandPenthouse.com. (Click on the feature penthouse button) I believe the price is still a little high. It was just re-listed with a new agent and unfortunately, the previous agent had it priced ridiculously high in August of 2017 at $4,200,000. I believe this will be one of those times when an overpricing will eventually hurt the seller in the long run… and is no fault of the current agent. While I believe it should be priced closer to $3,250,000, the listing is at least in the ballpark. In the end, I am guessing this one should sell closer to $2,950,000 to $3,050,000. This unit features a huge rooftop deck, but because of the nearby freeway noise, the future owners will probably use the lower decks more often.
The third penthouse to compare is one I had briefly mentioned when it came on the market back in February. It is #1502 at The Elizabeth. I really like this penthouse unit. With two levels and a very open floor plan it has a lot to offer, and it better at $3,300,000…down from its original price of $3,650,000. This unit scores high in style and while the listing agent is a little generous in saying it has a “chef’s” kitchen, it does have the potential to be even more stunning than it is already. This is a building that I like and know very well. I thought the $3,650,000 was very high but I believe that the buyer who buys this beautiful Portland penthouse, somewhere between $2,900,000 to $3,100,000, will be getting a truly beautiful penthouse at a reasonable price!
If you are a buyer that is in the market for one of Portland’s beautiful luxury condominiums, please give me a call and we can set up a tour to go and view some of the stunning units that are on the market right now.
Brad Golik is a condominium specialist with LuxuryCondosofPortland.com and Total Property Resources. You can best reach him at 503-896-8856 or at firstname.lastname@example.org
We have been hearing over and over again how hot the market has been. Well, that is changing! While normally this is a slower time of the year, what is happening now is a little bit of a surprise when you listen to the national news and hear how crazy the market is (Seattle, San Francisco).
If you have ever walked past my office (717 NW 11th) in the heart of the Pearl District, you have probably stopped to glance at all the listings featured in our display window. What has changed in the window since last week? PRICE REDUCTIONS! And many of them. Is the market tanking? No, I believe it is a combination of things starting with what is always a typically slow time from the week before July 4th to the beginning of the school year. The reductions are not so much a depreciating market but more of a whack on the head for listing agents that overpriced many units. Sometimes when inventory is low and things are slow, an agent will “buy a listing”. What does this mean? If an agent is competing with another, there are some who will give the seller an unrealistically high value in hopes that will be enough to sway the seller to choose them… a VERY bad practice, but I see it all of the time. In fact, I just lost a $975,000 listing partially for this very reason. (The other part was the agent told the seller that his firm is stronger internationally and that they could attract “Chinese buyers.”) This is so 2015! Those days are pretty much past and in reality, there have been very few Chinese investors buying in Portland. In addition, when you have a strong internet presence like I do, you get seen around the world. The whole thing about their firm being better internationally is really smoke and mirrors!
Back to price reductions, here are a few examples:
In the Casey, a one bedroom unit on the 8th floor was originally listed at $729,000. Now a year and five price reductions later it is priced at $619,000…and it still has not sold.
A penthouse at the John Ross originally priced at $2,350,000 was just reduced $355,000 to $1,995,000.
Several units at Fountain Plaza have had huge reductions. One unit went from $2,295,000 to $1,895,000. Another went from $1,995,000 to $1,695,000 and a third went from $1,350,000 to $999,000 with none of them selling yet. What is moving in this market? While it is taking longer, the units that are priced correctly, or at least somewhat reasonably priced, are still being sold.
Here is a great example of what I have mean. A penthouse just came on the market today in downtown Portland for $3,250,000. I had shown this unit about four years ago when it was priced at $2,200,000. (It had been on the market for 5-6 years) Back then I told my buyers they should not pay more than 1.6-1.7 million for this unit. My reasoning was the neighborhood was deteriorating, it was an inferior building compared to a neighboring building (The Eliot) that has much higher quality finishes, the highest sale in that building in the last 3 years was $760,000, it had the two slowest elevators in the city… and this was a big one, there was no garbage chute! I do not often make guarantees, but this is one I am comfortable in predicting, “You will see some big price reductions on this unit moving forward!”
And on top of that, if you have read my blog you have heard me mention that if you want to try to capture a premium over the market value of a unit then you MUST have very good marketing and dare I say it… professional photos at the very least! And no, this $3,250,000 listing, if you can even believe it, does not have them!
Brad Golik is a luxury condominium specialist in Portland, Or. If you are in the market to make a purchase of a Portland penthouse or luxury condominium, call Brad today!