After a fourth-quarter post-election stumble, condominium prices in Boston resumed their upward trajectory late in the first quarter.
This year it’s demand for “mid-luxury” product that’s leading the way amid a slowdown in the ultra-high-end market, according to research from The Collaborative Cos. of Boston.
“We just don’t have that many $5 million-and-up buyers floating around. Whether it’s One Dalton or what’s left at the top of the Millennium Tower, they’re not flying off the shelf the way the ones behind them did,” CEO Sue Hawkes said at a ULI Boston event Friday.
So far in 2017, the sweet spot is units priced at $900 to $1,200 per square foot, Hawkes said. Buyers are more willing to consider satellite neighborhoods on the edges of the urban core with good transit connections, walkability and thoughtful common-area amenities.
“The walkability factor has become so important; buyers are willing to compromise on the neighborhood for that benefit,” she said.
Developer Related Beal’s 157-unit Lovejoy Wharf condos next to North Station do not have any on-site parking, although buyers can rent space in a nearby garage. Units there are starting at $750,000, with average prices of $1,350 per square foot.
And at Somerville’s Assembly Row, near an MBTA Orange Line station that opened in 2014, the Alloy condo complex is 85 percent pre-sold at average prices topping $1,000 per square foot.
“I don’t know how sustainable it is, but the lower end of the market is so deep, I don’t think we can ever satisfy it,” Hawkes said.