New Construction Prices Are Rising — Is Las Olas River House the Value Play?

This is the question sophisticated buyers should be asking:

How much am I paying for “new”?

New construction is exciting. New finishes, spectacular amenity decks, modern architecture and luxury branding all deserve a premium.

But at some point, investors need to quantify that premium.

5 Numbers Every Las Olas Buyer Should Compare

1. Price Per Square Foot
Compare River House directly with Andare and Viceroy. How large is the new-construction premium?

2. Total Acquisition Cost
Don’t stop at $/SF. Compare what $2M, $3M or $4M actually buys in each building.

3. Residence Size
Large luxury floor plans are expensive to recreate. Compare usable interior space - not simply headline prices.

4. Annual Carrying Costs
HOA, property taxes, insurance and other ownership expenses can materially change the economics of a condo investment.

5. What Are You Getting for the Premium?
New construction should command more. The question is whether the better amenities, finishes, architecture and branding justify the difference for you.

LUXURY REPLACEMENT-COST ARBITRAGE

I wouldn’t describe River House as “cheap.”

I’d describe the opportunity differently:

Established luxury potentially trading at a substantial discount to the cost of buying the newest generation of luxury nearby.

That’s a much more interesting investment conversation.

Craig Bujnowski
Luxury Waterfront & Las Olas 
@craigbuj | 617-784-7504