Ghost towers are slowly increasing in number in the city, so we thought we’d take a look at the reasons behind their growth:
- Those with fewer than 70% of units sold do not meet most lenders’ financing criterion;
- Buyers have dried up due to rising unemployment and tightening credit markets;
- Developers’ funds have dried up as banks have ceased extending the additional credit needed to complete the build-out; and
- Developers are sitting on unused cash and waiting out the market, choosing instead to pay interest on untapped loans rather than fall prey to falling property prices. …
I ain’t afraid of no ghosts.
