Downtown condo developers posted a net loss of 253 sales in the fourth quarter of 2008, a result of canceled contracts outnumbering new sales, according to Appraisal Research Counselors‘ latest Downtown Chicago Residential Benchmark Report.
Crain’s, which got its hands on the report yesterday, reports that downtown developers sold 592 condos last year, down 84 percent from 3,724 in 2007. Although demand isn’t high, some developers have been able to “goose sales” by cutting prices as much as 20 percent, the report says.
Another article from Crain’s — one regarding a new foreclosure suit filed against the proposed Mandarin Oriental Tower project — says the number of canceled or suspended developments in the downtown reached 22 by year’s end. Additions to Appraisal Research’s own “dustbunny” list between October 1 and Dec. 31 included Related Midwest’s Peshtigo in Streeterville and Kargil Development‘s X/O Condominiums in the South Loop.
This year, builders will complete approximately 5,000 new homes in the downtown area (defined as the area bounded by Lake Michigan, Cermak Road, North and Ashland Avenues and parts of the Chicago River), with 620 more coming online in 2010 and 86 in 2011, Crain’s reports.
We should receive our copy of Appraisal Research’s report summary soon and will let you know if we find anything interesting.