High-rise sales down; prices up
The Las Vegas high-rise market experienced a decrease in sales between April and June compared to the same period last year, yet it achieved its highest second-quarter pricing ever recorded. Moreover, the year is on track to set record-breaking sales prices for high-rise units. A study by Applied Analysis tracked sales in 21 towers across Las Vegas, revealing a total of 171 high-rise unit sales during the second quarter. This is an increase from the first quarter but shows a decline from 235 sales in the second quarter of 2023, 325 in 2022, and 316 in 2021. Excluding the pandemic-affected year of 2020, this marks the lowest number of second-quarter sales since 2019, which had 160 sales.
Throughout the year, the market has seen 333 high-rise closings, a drop from the 407 closings recorded a year ago, and significantly lower than the figures from 2022 (618) and 2021 (539). At this rate, 2024 is poised to have the least sales since 2019, which saw 303 sales in its first half. Despite the dip in sales numbers, prices have surged. Applied Analysis reported an average unit sale price of $646,377 or $494 per square foot during the second quarter, a noticeable increase from previous years.
The highest average sale price was set in the first quarter of 2024 at $828,902, with a record price per square foot of $613. Leading the sales was MGM Signature with 23 units sold at an average price of $408,838 or $579 per square foot. Other notable developments included Turnberry Place, Trump International Hotel Las Vegas, and Palms Place, among others, showcasing a variety of average prices and sales volumes.
In terms of remarkable sales, the highest-priced condo sold during the second quarter went for $4.6 million at the Waldorf Astoria. This 40th-floor unit, spanning 2,998 square feet and featuring two bedrooms and 2½ baths, underscored the premium value buyers place on specific floor plans and locations within high-rise developments.
Luxury Realtor Anthony Spiegel commented on the decreased sales volume being attributed to a lack of quality inventory on the market, which in turn has led to stable or slightly increased prices for the units available. Spiegel also pointed out that the nature of the high-end market is significantly influenced by the unique wants and needs of buyers at that level, beyond mere affordability concerns.
Another factor contributing to the constrained inventory is the reluctance of many unit owners to sell, owing to favorable interest rates they currently enjoy. With the supply of high-rise condominiums limited to around 10,000 units – half of which are condo-hotels – the scarcity of prime listings is acute.
Despite current market dynamics, Spiegel is optimistic about the future construction of high-rise buildings in Las Vegas. He anticipates new developments not only in planned areas like MacDonald Highlands in Henderson and downtown Las Vegas but also potentially in Summerlin and other locales, aiming to meet the demands of buyers seeking the convenience and luxury of high-rise living combined with the benefits of custom homes.
The evolving dynamics of the Las Vegas high-rise market, marked by this unique interplay of decreased sales but increased prices, highlight a sector adjusting to both internal constraints and external demands. As the market continues to navigate through these trends, the anticipation of new developments adds an exciting dimension to the city’s skyline and the overall real estate landscape.
