Condo hotel projects are still going up, the Mexican market is on fire
Denver, CO (PRWEB) December 8, 2006
Though analysts are citing a slow down in the nation's real estate sector, the condo hotel market appears to be insulated from much of the market's "cool down" trend.
The typical condo hotel buyer is usually a Baby Boomer in search of an ideal second home for retirement or an investor.
"Our prospective buyers aren't necessarily dependent on the sale of their primary home in order to purchase a condo hotel. Most of our clients are investors or jet setters looking for a 'crash pad.' I believe that's helping to keep the condo hotel market buoyant during this rough patch in the real estate market," says Steven Roszell, owner and operator of CondoHotels.com.
Sources report that Donald Trump's latest venture in Hawaii, Trump Waikiki, set an unprecedented record of securing more than $700 million dollars worth of condo hotel sales within hours of its grand debut. Corinne Huntress, sales director for Trump International Hotel and Tower Waikiki Beach Walk, confirms that the majority of interested buyers of the 462 luxury unit condotel are investors, particularly Japanese investors, and local Hawaiians. The hotel is set to begin construction this December.
Honolulu, Hawaii, is one example of an area that has remained resilient despite the decelerating national real estate trend. According to the National Association of Realtors, the appreciation rate continued to rise by 18% in the Honolulu metro area in the first quarter of 2006 from a year ago. The NAR also reported that "a significantly higher percentage of mortgages were used to buy second/investor homes in the local area compared" to the national average.
Roszell also believes the cooler weather is helping to fuel the condo hotel market. "People have migratory inclinations," says Roszell. "When the chill hits, people are reminded that warmer weather is better." Roszell has already noticed an increasing interest in his investment properties that are featured in warmer climate destinations.
"Condo hotel projects are still going up, the Mexican market is on fire," says Roszell. "This wouldn't be happening if the proverbial real estate market 'bottom out' had occurred."
Licensed Real Estate Broker
Florida and Colorado
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