Filed under: Real Estate Developments
Back in May we learned that buyers into Las Vegas' CityCenter's Veer and Vdara towers wanted an adjustment on their condo prices because of changes in the real estate market. At the time it looked like MGM Mirage was standing firm on their prices and MGM Mirage spokesman Alan Feldman said the company was going to wait until the end of the year to make any decisions because it was too soon to say how the market could shift. Something must have shifted already because now MGM Mirage has said it will cut the prices of condos. Bloomberg News has a quote from MGM Mirage Chief Executive Officer Jim Murren that states plainly that there is no denying that the real estate market has fallen dramatically since the deals were inked.
MGM is building 2,400 condos at CityCenter and some buyers have had trouble obtaining mortgages for the high-priced condo units especially since real estate values have fallen by over half in the past three years. Without mortgages many deals will be unable to close. Details on the condo price cuts are expected to be announced this fall and should provide some relief for buyers. So far 65 percent of the Veer Towers units are under contract and 45 percent of the Vdara hotel-condo units are under contract.