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THE NEW FRONTIER FOR ULTRA LUXURY CONDOS: WHY SOUTH BOSTON MIGHT BE THE NEXT NEIGHBORHOOD DEMANDING $1000 PER SQ. FT.

New construction luxury condos have been popping up for many years in South Boston.  In fact, more buyers are now interested in new construction or pre-construction condos than ever before.  Why? Because the market demands it.  Buyers don’t want to live in a converted triple- decker with an outdated exterior, multiple flights of stairs and no parking for $650,000 when they can buy in a newly constructed building with an elevator and garage parking for $700,000.  Point taken! However, recent trends suggest that Southie buyers are moving into a whole new stratosphere of pricing that would solidify the neighborhood as THE hottest ultra luxury market in Boston. 

Case in point is the nearly sold out Allele Phase II at 150 Dorchester Ave.  Units on the upper floors of the new construction mid-rise range from $800 to $994.86 per square foot.  As a point of reference, the average sale price per square foot on ALL condos in South Boston over the past three months was $586.  Even with those significantly higher price points the Allele is selling out incredibly quickly with an average of 7.78 days to offer.  (Note: the Allele units are under agreement but have not sold yet, however it’s safe to say the price per square foot is within 5% of the list price).  Although the Allele boasts some of the most impressive sales numbers in South Boston history, many of the new condo buildings currently under construction stand to blow Allele’s numbers out of the water.

14 West, arguably Southie’s most anticipated ultra-luxury project ever, will include an 11- story mix of 1, 2, 3 and 4 bedroom units ranging from 700 to 2800 square feet.  The parcel at 14 West Broadway is ideally situated across from the West Broadway T Station and has direct access to I-93, 90 and the express route to Logan Airport, as well as the Ink Block and restaurants of the South End. 14 West, will include such resident amenities as valet parking, a sky deck with unobstructed (for now) views of downtown Boston, a fitness facility and outdoor pool.  14 West’s developer plans on pricing units at $850 per square foot for units on the lower floors of the building.  However, pricing for the larger units situated on the upper floors of 14 West will reach nearly $1300 per square foot.  One eye-popping example is 14 West’s Unit 903, a 4+ bed, 3.5 bath boasting 2,882 square feet of living.  This mansion in the sky will be priced at a cool $3.75 million.  The question now is not will 14 West be able to sell out but how fast and for what record-setting prices?

For years, prices like these were only the norm in Boston’s prestigious Back Bay (One Dalton, expected to garner prices exceeding $2000 per square foot) and more recently in the Seaport (see: 22 Liberty and 50 Liberty) but South Boston is now on the forefront of undergoing an ultra-luxury renaissance that was all but unimaginable 25 years ago.  With new buildings popping up every day and buyers knocking units down like they are playing whack-a-mole, it is not surprising that the average price per square foot in developments such as the Allele, 150 West Broadway and the aforementioned 14 West could easily eclipse $900 and reach altitudes of well over $1000.  In addition to all of this, the Boston Redevelopment Authority is currently overhauling the zoning throughout the Dorchester Ave. corridor in South Boston, which could result in residential towers reaching 300 feet in height, increase the overall density in the neighborhood and will surely provide more luxury options to Southie buyers.  This would also provide many vital amenities to what was once a barren wasteland trapped in the middle of Southie, Dorchester and the South End.  Although some market experts say the Boston real estate market could slow down in the next two to three years, all current signs point to the ultra-luxury condo market and astronomical pricing reaching record-breaking highs over the next 12 months. Buckle your seat belts and enjoy the show!   

 

Looking for access to off-market pre-construction condos, contact Elevated Realty today to get a full list of upcoming availability!

 

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