The sale of luxury condominiums in Rhode Island, particularly in Providence, has barely been affected by the sluggish real estate market. And prices of high-end units are actually on the rise.
“There is still a need for that luxury high-end condominium, as long as it’s in a good place like the East Side, and we still have buyers who are interested,” said Kathy Schmitt, director of sales for Angell Way Associates, the group marketing 11 newly built luxury condominiums at 77 South Angell St. near Wayland Square.
The troubled economy is actually one reason for the interest, she suggested, because “everyone is working a lot more, so condominium living really fits their lifestyle and they don’t need to worry about maintaining a home.”
Paul A. Leys, president of the Rhode Island Association of Realtors, was surprised by the figures he obtained for Providence Business News, reflecting the sale of luxury condominiums (starting at $750,000) in the state and in Providence. Sales have held steady and prices have increased.
In Providence, including the East Side, 11 luxury condominiums were sold in 2007 and the same number in 2008, according to Leys. “The biggest surprise,” he said, is that the median price of a luxury condominium residence in the capital city increased 24 percent from 2007 to 2008, from $850,000 to $1,050,000. Average prices were $892,886 in 2007 and $1,130,509 in 2008.
In the state as a whole, Leys said, 33 luxury units were sold in 2007 and only two less, 31, in 2008. Again, the median price increased, from $850,000 in 2007 to $1,069,000 in 2008.
Why the increase? Leys suggested that the sale of “upper-end” luxury condominiums has not been affected by foreclosures.
On the whole, for condominiums of all prices in Rhode Island, sales fell 33 percent, or approximately 600 units, from 2007 to a total of 1,210 sold in 2008. Distressed sales, including foreclosures, accounted for 12.7 percent of last year’s total, or 154 units, according to figures The Realtor association released earlier this month. In the final quarter of 2008, condo sales statewide plummeted 43.1 percent from the year before, for a total of 222 sales, of which 47 units or 21.2 percent stemmed from distressed sales.
At 77 South Angell, developed by the Armory Revival Co. and Myles Standish Associates, the 11 units are priced between $750,000 and $1.225 million, depending on size that ranges from 1,518 to 2,400 square feet.
The groundbreaking for the four-story development at the site of the former Katharine Gibbs School was held in April 2007. Construction, including work on the exterior fountain, is expected to be completed in April.
One unit has been sold but, according to Schmitt, it actually comprises two units on the top floor that the buyer intends to combine and use as one residence. Two other units are “under reservation,” Schmitt said.
Unlike some other condominium developments, where units are rented when sales slow, 77 South Angell is not leasing. “We don’t think that would be fair to our owners who are buying,” Schmitt said.
Meanwhile, across town, 60 percent of the 103 condominium units at the Residences at the Westin Providence are occupied, according to Ralph Izzi, communications director for the developer, the Cranston-based The Procaccianti Group.
The one- and two-bedroom condos include one-level flats, townhouses and penthouses, all located on the top 16 floors of the 32-story Westin tower. Price range is $454,900 to $2 million-plus.
The occupied units are “close to a 50-50 split,” he said, between homes that have been purchased and others rented or leased with an option to buy. •
