Ritz reduces asking prices
The Ritz-Carlton Residences in the Inner Harbor has lowered the asking prices on 30 of its condos by about 30 percent.
The luxury development, conceived in good times and delivered after the housing market slammed on the brakes, has closed deals on just 24 of its 190 units. About a dozen more are under contract. That leaves a lot more to sell.
The discounted units represent about 20 percent of the condos that haven't either sold or gone under contract. (Hat tip to The Daily Record, which had it first -- though you'll need to sign in to see the story.)
New prices on the 30 units range from $499,000 to $2.1 million, says Greg Harris, a spokesman for the developer, RXR Realty. It's not the first reduction: When the development opened, asking prices ranged from the upper $800,000s to $5 million.
Back when a bunch of the Pier Homes at HarborView were being auctioned off, I asked the Ritz-Carlton developers what effect their next-door neighbor's big price drops were having on them. In a statement, they said the development "has seen a record increase in traffic in April, May and June."
Harris said Wednesday that the auction results had nothing to do with the Ritz-Carlton's decision to discount some of its units.
"It's not a true comparison of projects," he said. "The list of amenities and the finishes and the lifestyle that people are looking for at the Ritz-Carlton don't compare with any other project in Baltimore."
It's an interesting question for both appraisers and buyers: How different do luxury products need to be before they're not competing against each other for the same prospects?