Over the last week or two on this site readers A1 and Macchiato have posted rumors that a local developer was getting ready to announce big price cuts to clear out unsold condo units.. According to the CBC it looks like those rumors may be coming true. Developer Onni has 375 condo’s that aren’t selling and the CBC is reporting that they will be liquidating these units in a ‘dutch auction’, which could potentially set a new low price point for the thousands of condo units still to be completed over the next couple of years.
The CBC is reporting that Onni will be holding a media event on Thursday to announce details. If you find a link to more information on this story, please post it in the comments section.
update: Lilypad posted a link to this PDF advertising the sale, it does not appear to be a ‘dutch auction’ as CBC radio reported, but the PDF does not include a lot of detail. It does include the following as part of a FAQ:
Is it auction??
No. It is a bulk purchase. There is no extra contract work of any kind required.
What are the homes being discounted??
Aggressive speculators lined up overnight at launches to scoop up prime units and then could not ﬂip them before completion. Many could not afford to complete and lost 15% deposits. Much of the available inventory is made up of these homes. They are 375 completed, fully warranted, brand new, never occupied homes featuring the latest ﬁnishings and amenities.
Spread over seven projects located across the Lower Mainland.
They also include the following comments on prices:
How inexpensive will they be??
These homes will sell under assessed values, current comparables and independent market appraisals at prices that get buyers very, very excited.
Why is the developer selling for such low prices??
These homes are standing inventory and costing the developer strata fees, property taxes, capital carrying cost and other costs. Also, many of these homes have been partially paid for by the abandoned deposits of speculators.