In Defense of Urban Land Company

The other day I was complaining about Urban Land Company's habit of responding to their inability to sell units in their new condo "The Floridian" by increasing the volume of email they send out rather than lowering prices. Some research in my own inbox reveals, however, that that's not quite accurate -- an October 25, 2007 missive stated:

Studios from $244K
1 BRs from $345K
2 BRs from $444K
Penthouse from $450K

For the past several rounds of emails, the prices have in fact changed from what they were asking seven months ago. Now it's:

Studio from $244K
1 BRs from $301K
2 BRs from $442K
Penthouse from $625K

The giant increase in the Penthouse asking price perhaps reflects an effort to use framing effects to make the other units look like a good deal.

Comments

1BR looking like a steal!

Posted by right | May 23, 2008 12:55 PM

That or they sold the one really cheap penthouse

Posted by Rob | May 23, 2008 12:59 PM

Maybe they added a wall to one of the bigger studios and are now calling it a 1br?

Or, as folks are want to do in this the Bay Area, a Jr 1 BR.

Posted by talboito | May 23, 2008 1:25 PM

I am going to have to go with they sold the cheap penthouses.

Posted by nathaniel | May 23, 2008 1:29 PM

Those framing effects can work, at least in other contexts or where you're not dealing with something like housing where there's always somewhere else to look. My dad sells paintings, and a few years ago started pricing one painting far more than all the others at his shows. That painting is always the first to sell, and the others sell better. It's weird.

Posted by m. leblanc | May 23, 2008 1:38 PM

talboito, they call them "Jr 1 Bedrooms" here in DC, too. It's simply an attempt to wilfully deny that the unit is a studio.

And those 1 bedrooms might seem cheap, but I'd be impressed if the cheapest ones where bigger than 550 square feet.

Posted by Tyro | May 23, 2008 1:40 PM

I've always wanted to live in a penthouse. The thought of growing corn on the balcony and diddling a blond Hungarian bombshell has an exotic yet quirky allure....

Posted by steve duncan | May 23, 2008 2:05 PM

As bad as the housing market has been, the tip-top of the urban luxury market is still going strong. They probably made some upgrades to the penthouse to bump it up into the next tier in luxury.

Posted by joe | May 23, 2008 2:25 PM

You could of course offer them less. They do not have to accept. Just a thought.

Posted by cheflovesbeer | May 23, 2008 2:39 PM