News on December 2, 2008 of the first price reduction at the luxury Mandarin Oriental was quickly followed by two additional price reductions, this time on the penthouse level.
Unit PH1-C, a 5,100 square foot 3 bedroom 4.5 bathroom accompanied by 2 parking spaces was reduced on December 5, 2008 from $12,500,000 to $9,950,000. The significant outdoor terrace and deck space (1,000 + square feet) of this unit, now priced at $1,951 per square foot, is much more in line with the average price per square foot of $1,970 for all current resale listings at the Mandarin.
Unit PH 1-D, a 2,000 square foot 2 bedroom 2.5 bathroom unit that is accompanied by 1 parking space was reduced on December 9, 2008 from $7,000,000 to $5,500,000. Despite the large private roof deck boasting superb views, the $2,750 per square foot price tag is still grossly out of line with other price per square foot numbers in the 50-unit building.
While statistics have shown a luxury market slowdown hitting Boston, these price reductions simply bring units that were priced well above the curve back towards the average of currently available Boston Mandarin condos for sale.
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Tim Ryan 
There’s no room for “luxury” in this economy right now. Condos in Charlotte, NC, where I live, seemed bulletproof until recently – now new, higher-end condo construction in our “Uptown” area is starting to scale back or, in some case, going bankrupt in the middle of building.
As you said, these units were just priced above the market value from the very beginning. This doesn’t mean there isn’t room for “luxury” in this economy. $1m+ units are still moving swiftly in downtown Boston and with inventory down significantly compared to the last few years the demand is going to stay high downtown properties.