Tuesday, October 7, 2014

Foreign Investors, Condo Development Driving Boom

The Boston condominium market is attracting foreign investors, eager to capitalize on the city’s economic stability, world-class academic institutions, and its position as a “safe haven” for their cash, according to The Collaborative Companies CEO Sue Hawkes (a featured speaker at tomorrow's Boston State of the Market event). There is a scarcity of for-sale product, she says. With only three major condo projects currently under construction, prices for new product are rising above the $1,000/SF to $2,000/SF range. Until recently, all that could be financed were multifamily rental developments. As a result, there’s potential oversupply, with rents for most new apartments starting at $4/SF. Now, that’s changing—the condo market is hot and new developments are coming.