Sales of high-rise condos in Las Vegas slowed in 2023 compared to the previous two years, but sellers willing to put it on the market were rewarded with the highest price per square foot in Valley history.
The average price paid per square foot across 736 sales in 2023 was $501, higher than the $493 per square foot paid in 2022 with 944 sales, according to research firm Applied Analysis. The company's study of 21 high-rise buildings in Las Vegas found that the average price paid for a unit was $587,823, lower than the $598,383 price tag in 2022.
We're only two days into the new year, but there's already been a sale on the Strip for a 43rd-floor penthouse at the Waldorf Astoria for $9.5 million, making it the most expensive property ever sold. Measuring 3,922 square feet, the three-bedroom, four-bath unit includes an office, dining area, lounge, great room, and kitchen. The master bedroom features limestone with Scavolini cabinetry, mosaic tile, and heated floors. His other two bedrooms have private bathrooms.
It sold for $2,422 per square foot, another record price in the building's history, said Frank Napoli, a real estate agent with Berkshire Hathaway Home Services who lives in the building and represented the buyer. That's what it means. The previous record was $8 million, or $2,039 per square foot.
Stefanie Barela of Barela Investments acted as listing agent.
Napoli said he was not surprised that Las Vegas set a record of $501 per square foot in 2023 and expects it to surpass it in 2024.
“We're already off to a good start. Once we find the right inventory, we have a lot of buyers looking to buy high-rise buildings here in Las Vegas,” Napoli said. “As far as it turns out, there is enough pent-up demand to see the high-rise market perform even better in 2024.”
The demand shows people are interested in high-rise homes in Las Vegas as an alternative to single-family homes, he said, and that strong demand coupled with a lack of inventory is driving up prices. added.
“This is especially attractive to out-of-state buyers who purchased a second home in Las Vegas and continue to maintain homes in other cities,” Napoli said. “It's a great alternative to something that can be left alone for long periods of time without worrying about maintenance. It also offers a unique living experience and a place to enjoy sports, dining and entertainment on Las Vegas Boulevard without leaving the city.”
Naples said strong sales, with a record 1,158 homes sold in 2021 and 944 homes sold in 2022, have cleared inventory for 2023. These buyers enjoyed their condos and did not want to sell their units.
“The amount of inventory that was there has already been purchased and now a lot of people, especially these new buyers, are not interested in selling,” Napoli said. “My customers and their reasons for buying and selling have changed a lot over the past three and a half years. Most people who own them own them for a reason.
These are investments, second properties, or permanent homes, but it turns out that in the past, owners didn't have as many reasons to keep them. I was happy to sell it if I didn't use it much or wanted to cash out my investment. Just like we're seeing with single-family homes, property owners have more reasons to keep what they own, and sales are down. ”
Napoli said that includes people who claim Las Vegas as their home for tax purposes and investors who are taking advantage of higher rents in the high-rise market.
Rising mortgage rates won't affect luxury buyers as much as others, but it will affect people who bought homes at lower interest rates and don't want to part with them in a higher interest rate environment. said Napoli.
Napoli said the Waldorf Astoria, which houses a luxury hotel in the lower half of the building, is in high demand because it is the only building of its kind to offer services.
The Waldorf Astoria already had a luxury sale in January, when a unit on the 42nd floor sold for $5 million. The 2,756-square-foot unit has two bedrooms and two-and-a-half bathrooms.
It was listed by Diane Varney of Coldwell Banker Premier, and the buyer was represented by Ahmed Khan of Realty One Group.
The buyer is an F1 fan and said the view, overlooking the corner of Harmon Avenue and Las Vegas Boulevard, influenced his purchase. Ahmed Khan said the couple are executives in the health care and automotive industries and have homes in Houston and Orange County, California.
“These are F1 enthusiasts who travel all over the world to watch races and even go to Las Vegas,” Khan said. “F1 has been a help, especially for units in the Las Vegas Boulevard area, and the announcement that a baseball stadium is going to be built[at the Tropicana Las Vegas]has also been a big help.” I talked to several buyers about various units. We are cooperating. ”
Khan said overall concerns about the economy led to a decline in sales in 2022. He said unconcerned luxury buyers with limited inventory were buying, contributing to the rise in price per square foot.
“We don't have that many units,” Khan said. “This was the only unit you could buy at the penthouse level at the Waldorf. If you look at other high-rise buildings like The Martin and Via, there aren't that many units available for purchase. When it comes to quality inventory, your options are limited. ”
■ The Waldorf Astoria had 23 sales in 2023, with an average price of $2.17 million and a price per square foot of $1,238, the highest on the market that year. There were 34 sales in 2022, with an average price of $2.39 million and a price per square foot of $1,278, according to Applied Analysis.
■ Condominium-hotel MGM Signature had the most sales in 2023 with 170 sales at an average price of $385,975 and an average of $531 per square foot. There were 151 sales in 2022, with an average price of $387,145 and a price per square foot of $497.
■ Trump Las Vegas, another condominium hotel, was second in terms of sales with 63 properties, an average price of $299,783, and a price per square foot of $500. There were 80 sales in 2022, with an average price of $330,302 and $514.
■ Panorama Towers and Condominium Hotel Palms Place had 59 sales, followed by Turnberry Place with 57 sales.
■ Joule had 43, followed by Turnberry Towers with 42 and Veer Towers with 41. Platinum had 30, followed by One Las Vegas and Allure with 25 and Sky Las Vegas with 20.
■ Queensridge Place had 19, followed by Vdara Condo Hotel with 16 and Boca Raton and The Ogden with 15.
■ There were six in Soho Lofts, followed by four in Park Towers, and two each in Metropolis and Newport Lofts.
Queensridge Place had the second highest average price at $1.67 million, followed by Park Towers at $1.64 million. Turnberry Place went for $1.18 million. No other condos had an average price close to $1 million.
Vdara had the second-highest price per square foot at $980, followed by Via Towers at $703, Park Towers at $592 and One Queensridge Place at $572, according to Applied Analysis. It continued.
