From the New York site: It’s a situation that might sound all too familiar to New York real estate insiders.
A plan to build one of the tallest residential buildings in Boston has been scrapped amid concerns about high construction costs and oversupply in the luxury market, the Boston Globe reported.
Publicly-traded mall giant Simon Property Group announced in a third quarter earnings call that it was putting aside plans for the 625-foot, 52-story residential tower atop Boston’s Copley Place.
“I would encourage everybody to study what’s going in construction costs and what’s going on in supply and demand” in Boston, CEO David Simon told analysts, noting that the company might revisit the project at a later date. “It’s just not the right time to do it,” he said.
Greg Vasil, chief executive of the Greater Boston Real Estate Board, told the Globe that the Boston market was topping out.
“We’re probably at the peak, or bumping along,” he said.“The question is, do we continue to bump along or do we start to come down. And everybody’s wondering what happens when that happens.”
In New York, Chinese developer CL Investment Group recently pulled the plug on a $300.2 million luxury condo conversion of the United Charities office building at 287 Park Avenue South in the Flatiron District amid rumblings of oversupply, opting instead to keep the building commercial. [Boston Globe] — Katherine Clarke