My friend Mark Puente at the Tampa Bay Times recently published an article entitled “New Waterfront Condos Disappearing from Market in Tampa Bay“. At the Smith & Associates Real Estate office on Beach Drive in Downtown St. Petersburg, on a daily basis I have customers walk in who inquire about the condo buildings nearby, especially Parkshore Plaza (aka 300 Beach) and 400 Beach, which are directly behind our office. They want to know pricing and how many are available, and honestly, the answers to these questions sometimes shock them. While some seem to understand that these are waterfront luxury condos and come at a certain price, others expect from watching the news media that they can still pick up a $100,000 condo in a high rise (maybe in a few buildings, but not the newer, luxury buildings overlooking the waterfront and marina).
Here are a few excerpts from the Tampa Bay Times article that I found interesting, with links so that you can see these properties and what inventory remains:
“Time is running out for people seeking new luxury condos in waterfront towers as the last of the units built during the go-go days fill up in Tampa Bay.
Water’s Edge, overlooking Clearwater Harbor, is the latest tower headed toward selling out after new owners slashed prices nearly 40 percent. The project – once destined for doom after the developer filed bankruptcy in 2009 – is expected to fill up in the coming months as only 30 units remain.
The same story has played out in the last year in downtown St. Petersburg and downtown Tampa. Luxury towers have sold quickly after developers, owners and banks cut prices. Another key factor is that developers didn’t overbuild this region as they have in other waterfront cities.”
“With rising construction costs and banks tightening lending standards, it could be years before a new luxury tower rises.
Joel Cantor, who developed Signature Place in downtown St. Petersburg, doesn’t expect any new towers until after 2020 because banks lost millions on the projects when the housing market tanked. Currently, the selling prices would trigger losses for developers, he added.
“The prices are too low to warrant new construction,” Cantor said. “The banks will not finance the projects.”
Larry Richey, senior managing director of Cushman & Wakefield in Tampa, said it will be three to five years before luxury condo towers rise again in the area.
Before that occurs, several luxury towers that developers converted to rentals after the bust will likely be converted back to condos, he said. The region has 400 to 500 units, including many in downtown Tampa.
In fact, developers broke ground Monday on a $55 million apartment complex in the Channel District. Within 18 months, the complex is expected to open with 356 apartments and 4,800 square feet of stores in four buildings.
Richey predicted that St. Petersburg will be the first to get a new tower.
“Downtown St. Pete is the best example of where there is a demand for luxury condos,” Richey said. “It’s a little slower in downtown Tampa.”
Deep price cuts have been the key to selling everything from suburban homes to waterfront condos across the bay area. The Towers of Channelside in Tampa and Signature Place and 400 Beach, luxury towers on Beach Drive NE in St. Petersburg, whacked prices in order to sell the remaining units.
The nearby Ovation complex has only a few of its 45 units left. The developer did not slash prices as deeply as other buildings and attributed that to wealthier buyers not being impacted as much by the economy.
But it’s not just luxury condos selling.
As existing home sales have risen in recent months and the supply dwindles, the overall inventory of condos for sale in Tampa Bay has sunk to levels not seen for years. The lower the supply, the stronger the market…”
Other Popular Downtown St. Petersburg Luxury Condos:
- Vinoy Place
- Florencia Condos
- Cloisters of Beach Drive
- Bayfront Tower
- Mc Nulty Lofts
- Walker Whitney Building
Also check out St. Pete Beach Condos and Clearwater Beach Condos – you can never go wrong with waterfront! Please do not hesitate to contact me if you are interested in a condo in Pinellas or Hillsborough County. I am happy to set you up with an MLS search so you are notified of new listings the minute they hit the market!