So who’s buying condos?

By now even the reader of the province know it’s a slow real estate market out there.  Not much is selling, sales to list ratio is low and prices are dropping.

..and yet, we still hear of new developments that have big opening day sales (where ‘opening day’ conveniently ignores months of marketing).

So who’s buying these new condos?

According to Bob Rennie it’s young people without any money:

Rennie Marketing registered 7,500 potential buyers before the sales launch, and he says the majority were under 28 years old. He believes it is the young demographic that is fuelling the sales of projects like the two he’s selling at Marine and Cambie. Part of MC2’s appeal is that because it’s not downtown (a 20-minute SkyTrain ride), the prices are lower. And pricing on more than half the homes was kept under $350,000, to appeal to the young demographic.

“So, we made the right decision bringing on both towers at MC2,” he reflects, sitting in a trendy coffee shop on Main Street. “We’ve released all the affordable product. There are 130 homes without parking so that we could get inventory under $300,000. We really did the research on the first-time buyer when we did Marine Gateway across the street, and 28 per cent of our buyers answered in an exit survey that they were receiving down payments from mom and dad, and grandparents.”

Full article in the Globe and Mail.

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jesse
Member

“There are 130 homes without parking so that we could get inventory under $300,000”

Oh. For a minute there I thought prices were dropping.

MarKoz
Member
Active Member

They pushed a sales brochure/card regarding this development through my mail slot. All the units advertised for less than $300K were approximately 440 square feet and billed as “1 bed”. The 2 bed units were all under 800 square feet and had prices from $442K to $539K.

Brian
Guest

Hilarious. Most of these units were bought by the developer. Prelude city homes is barely selling. They say 53% sold but I’m sure most were bought by insiders. And Prelude is in a much nicer part of town. I mean Marine and Cambie? Two loud truck routes? Even with the marine development, this is not what I would call livable or walkable. The development behind prelude completed a year ago and half the units are on the market, way overpriced. With all this inventory, pressure is forcing prices down

painted turtle
Guest
painted turtle

I miss Best Place on Meth’s humour…

pii
Guest
pii

@painted turtle
what happened to him? Is he banned?

raincity
Guest
raincity

@pii: Not banned. The only people that get banned are the ones that crapflood the comments with repetitive nonsense.

BPOM might have fled to warmer climes or may be in hibernation.

bullwhip29
Guest
bullwhip29
Who believes % sold figures anyway? Everyone knows there is a bit (or a lot in some cases) of deception going on here. Does anyone know if Telus Gardens has sold out yet? Or how about all the new developments in and around the Olympic Oval? Sales to staff and other insiders (of the better situated units at discounted prices) often occur weeks/months before the “official” launch. Of course, little do these buyers know that this is really what the game is all about. You know how it goes…I know a guy that has the inside track on a hot new RE deal and he tells me that these will get scooped up fast. Since you’re family, he “might” be able to get one (or how about three) for you too before they go on sale to the general public.… Read more »
DJB
Guest
DJB
I personally know of a young woman in her 20’s who just got her first job and refused to rent. Her parents forked out the 25% down for a condo in South Surrey as she did not qualify for CMHC financing. She purchased a one bedroom with a flex space, once she moved in she was astonished at the extra monthly fees she has to pay. She had her boyfriend move in to help with the payments and now has foolishly went out and got a dog. 6 months later from the original purchase she now finds herself in a space that is to small. Now she wants to rent (yes rent) a larger place (2 bedroom) closer to Vancouver. To make all this happen she now has to find a tenant for her South Surrey condo. It seems that… Read more »
fun
Guest
fun

raincity Says “BPOM might have fled to warmer climes”

gave up on crash in Van and moved east? Ottawa, Peg or further? for sure snowblowing right now.

patriotz
Member

@fun:
Ottawa has not snowed yet and was 20 degrees last week. 5 degrees as I write this.

Naked Official #9000
Guest
Naked Official #9000

@DJB:

Much like history, the gears of the real estate industry are greased with human blood and tears

Chabar
Guest
Chabar

@DJB:

It seems that Gen Y looks at condo buying as a fashion accessory and not a prudent financial decision.

This was a marketing objective promoted by Rennie and other snake oil salesmen where they openly said that they are selling the lifestyle not RE and results are just amazing by all means.

gokou3
Guest
gokou3

@Brian: And the Prelude development is butt-ugly. See their showroom at Oakridge mall.

Can't wait
Guest
Can't wait

@DJB:

Caucasian On Credit or Hot Asian Money?

vangrl
Member
vangrl

I miss BPOM too 🙁

Patiently Waiting
Member
Patiently Waiting

Toronto lawyer disbarred for dirty real estate deals.

http://www.thestar.com/news/gta/article/1290124–law-society-disbars-veteran-real-estate-lawyer-for-assisting-in-sham-deals

“In one deal, Sandler noted Hatcher family members bought a property at a price that, even on his own understanding, exceeded fair market value. The transaction was designed to get more money from an institutional lender to enable him and others to pay additional debts on the property, Sandler said.”

“Earlier this year, the Star reported a pattern of house flips and price jumps as much as 60 per cent in less than a day involving Hatcher. Most of the deals didn’t include deposits. Purchasers got money back. Mortgages exceeded the value of homes. The same buyers and private lenders popped up in many sales.”

anti-HAM
Guest
anti-HAM

@Patiently Waiting:

Those corrupt mainlanders driving up our real estate with their dirty money! They make me so mad!

cuic
Guest
cuic

“Sandler noted Hatcher family members bought a property at a price that, even on his own understanding, exceeded fair market value.”

Hatcher? that does not sound Chinese to me. those greedy, corrupt, Coach Bag buying, capitalist white folks. 🙂

No Noise
Guest
No Noise

According to Colliers (biased of course) this report http://www.vancouversun.com/business/Transit+corridors+fuel+sustained+demand+condos/7574525/story.html
says that transit friendly developments are primarily being bought by (and marketed to) Chinese investors (locals from the sounds of it) either for income or for their kids – so the kids don’t need their own money I guess. It’s hard to stop the herd once they get moving but the cliff is quickly approaching..

Yup miss BPOM

GAM
Guest
GAM
Anonymous
Guest
Anonymous

“Earlier this year, the Star reported a pattern of house flips and price jumps as much as 60 per cent in less than a day involving Hatcher. Most of the deals didn’t include deposits.”

For all the times we hear the bubble is not like the US it looks more and more the same every day. What ever happened to appraisals? Even automated ones can pick up a 60% increase in 1 day.

No Noise
Guest
No Noise
@GAM I don’t have a lot of time to think about your link but I have read it (will spend more time on it later). To respond to what i think you are getting at I would just say – I am passing on important data on who is buying a certain sector of real estate at the moment – according to Colliers and the article.. I dont care whether they are Chinese – or local Chinese more specificallly as the article indicated – or Brazilian for that matter. Its just important info for folks interested in Van RE – whether its actually accurate or not is the real question. I suspect those on here smarter than I (and with more time!) will be chiming in shortly. BTW I personally think its a big mistake to be buying Van RE… Read more »
Naked Official #9000
Guest
Naked Official #9000

@GAM:

Comrade, chill the fuck out

rp1
Guest
rp1

China to build world’s tallest skyscraper in 90 days: or your money back?
http://globaleconomicanalysis.blogspot.ca/2012/11/sky-city-china-to-build-worlds-tallest.html

After this they will drill to the center of the earth in a week and colonize the moon in time for supper.

I trust I don’t even need to mention the skyscraper index.

Anonymous
Guest
Anonymous

I too liked BPOM’s posts. I was going to suggest we all click our heels 3 times and yell “FUCKING SHITBALLZ” under the next full moon to see if we could conjure him back.

But, having just read the previous post i think NO#9000 is already filling in some of the lost commentary.

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