Condo Prices Jumped 16% Last Year
The Boston condo market has reached a record high, and an economic downturn would not even make things drastically more affordable. The average price of a condo in central Boston rose 68% from 2010 to 2016. Luxury buildings are driving the way: The median price in an upscale, full-service building was a whopping $2M last year, according to the Boston Globe. Downtown’s Millennium Tower was home to many of those high-cost sales; however, the local market should not expect the luxury sector to stop there.
Despite Simon Malls backing off plans to build a 52-story condo and apartment tower above the Copley Place shopping center, numerous other developments are steaming ahead. Back Bay’s Four Seasons Hotel and Private Residences One Dalton St., the Pierce in Fenway and Millenium’s Winthrop Square tower will each add luxury condos to the market, which real estate experts do not envision cooling off. Standard & Poor’s predicted that the average home in Boston would lose 6% at most if another 2007-level recession hit, while home values would plummet 27% nationally.
