Lavish Addition to the Boston Real Estate MarketDecember 6, 2014
As if we were lacking new Boston luxury condos in our local real estate market, now 25 more units will be added to the list. The Mandarin Oriental Hotel & Residences will be converted from rental units to new luxury properties. The new luxury Boston condos were originally rental units on the first four floors of the building with another 10 subsidized apartments. These will be sold under deed restrictions and should therefore be priced affordably. Boston real estate buyers will have to abide by these deed restriction laws when renting the units.
The 25 units are expected to go on the sale market in January 2015 and they will range from the smallest, 930 square foot unit, to the largest, about 1600 square feet. It’s not yet determined if buyers can combine units to make them larger. The current owner is a subsidiary of the Irish Bank Resolution Corp., and hasn’t determined prices for these new units.
Given the shortage of inventory in Boston real estate and the local luxury housing market, timing for this conversion could not be more perfect. Luxury condos are now selling for at least $2000/square foot, and buyers don’t even blink. The demand is insatiable and the market reacts accordingly.
More and more people coming into the city, young families wanting to stay in the city, young professionals and empty nesters are finding city life exciting. Also suburban residents become tired of commuting and are buying an in-town condo to avoid sitting in traffic during the week. Some buyers tend to sit out until the market calms down, but the reality is “will the prices ever go down again”???