From the ‘sun predicted to set’ department of todays Province comes this article: BC developer warns of cooling condo market.
B.C.’s development industry must be nimble, disciplined and well-financed to survive the cooling of the provincial market, a veteran developer says.
The Lower Mainland has yet to experience the full impact of the U.S. housing slowdown and the troubles sweeping the Interior’s forest sector, Concert Properties president David Podmore said yesterday.
“I do think you’re going to see a continued slowing of our economy as . . . what’s happening in the Interior and the U.S. spill over,” Podmore told a conference on the future of B.C.’s housing industry.
“You’re going to have to really sharpen your skills to be successful and to compete effectively.”
Podmore said developers should stop relying on pre-sales, which he called a phenomenon of the past eight to 10 years.
The market is heading into a period where projects may take half-a-year to sell out, he said.
Disciplined developers will pull the plug on projects if it becomes clear they can’t succeed, he said.
There will be opportunities for well-financed developers to take over idled projects – but they must be fast on their feet, he said.
The ‘pulling of plugs’ has already started to happen on some projects like the Eden group Elyse. Those that don’t pull the plug when they can get it pulled for them and go into recievership Sophia, H+H, Gardencity, etc. There’s good news though, as the US housing slowdown continues it’s forecast that material prices will moderate.