One of the tough things about buying units in new projects is that it’s hard to know the fair market value. While the developer will set a price — it’s the open market that determines whether that price is fair. As the famous Los Angeles agent Ari Emmanuel recently said, “Fair is where you end up.” For new projects, where others end up tends to be a secret.
So, it’s always interesting when the first new units in a prominent new building begin transacting on MLS. While it is not clear if it is a new or resale unit, the first Austonian transaction crossed the MLS in late December.
In this case, a 1,464 square foot 2/2 with 2 parking spaces sold for $680,000 after little more than a month on the market. The unit sold for 94% of it’s asking price. The final sales price was $464 per square foot. Currently on MLS, a similar mid-size unit is listed for $640 per square foot which would suggest that the quick sale may have been under-market. As more sales cross the MLS, the true value of Austonian units will become clearer. Until then, this will be the one data point that realtors will use as they negotiate with the sale office and owners listing units for resale.
In a crazy tall project like the Austonian, projects on upper floors are likely to carry a pricing premium. The unit that sold in December was located in the bottom half of the building.
Currently, there are just three Austonian listings on the MLS ranging in price from $1.03 million to $5.30 million. The $5.3 million unit is a beautiful 4,700 square foot 3/3.5 on the 45th floor. In addition, a single 1,609 square foot 2/2 unit on the 17th floor is available to rent for $6,400 / month — an amazingly high $3.98 / square foot per month.