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
3 years 6 months ago

“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
3 years 6 months ago

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
3 years 6 months ago

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
3 years 6 months ago

I miss Best Place on Meth’s humour…

pii
Guest
pii
3 years 6 months ago

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

raincity
Guest
raincity
3 years 6 months ago

@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
3 years 6 months ago
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… Read more »
DJB
Guest
DJB
3 years 6 months ago
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… Read more »
fun
Guest
fun
3 years 6 months ago

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
3 years 6 months ago

@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
3 years 6 months ago

@DJB:

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

Chabar
Guest
Chabar
3 years 6 months ago

@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
3 years 6 months ago

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

Can't wait
Guest
Can't wait
3 years 6 months ago

@DJB:

Caucasian On Credit or Hot Asian Money?

vangrl
Member
vangrl
3 years 6 months ago

I miss BPOM too 🙁

Patiently Waiting
Member
Patiently Waiting
3 years 6 months ago
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… Read more »
anti-HAM
Guest
anti-HAM
3 years 6 months ago

@Patiently Waiting:

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

cuic
Guest
cuic
3 years 6 months ago

“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
3 years 6 months ago

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
3 years 6 months ago
Anonymous
Guest
Anonymous
3 years 6 months ago

“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
3 years 6 months ago
@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 –… Read more »
Naked Official #9000
Guest
Naked Official #9000
3 years 6 months ago

@GAM:

Comrade, chill the fuck out

rp1
Guest
rp1
3 years 6 months ago

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
3 years 6 months ago

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.

Yalie
Guest
Yalie
3 years 6 months ago
@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. Exactly. As mentioned before, this kind of mortgage fraud was rampant in the US during its bubble, and only became evident once prices crashed. Get ready for an epic deluge of similar stories on the CBC over the next couple of years. The… Read more »
Guy Smiley
Member
Guy Smiley
3 years 6 months ago

@ rp 1

Hahaha – there’s a pre-sale line up i want in on. What could possibly go wrong?

HAM Solo
Guest
HAM Solo
3 years 6 months ago
The only thing that is different here is that in the US, I don’t recall any American continually blathering on about it being different there, than previous real estate busts in, say, Japan. Once they gave up on “running out of land” and “real estate always goes up” they were pretty quick to start pointing in the mirror at their own stupidity. And once they began to trace the breadcrumbs back to Wall Street, they didn’t have to overcome some massive national myth about how conservatively financed or well-regulated Lehman Brothers was. The Canadian housing bust will be different in… Read more »
gokou3
Guest
gokou3
3 years 6 months ago

@HAM Solo: What, you mean the government (us) cannot afford free medical care?

HAM Solo
Guest
HAM Solo
3 years 6 months ago

@ gokou

Wouldn’t it be ironic if Americans had medical care and ours went private.

Girlbear
Guest
Girlbear
3 years 6 months ago

@rp1: Does this Chinese tallest building in the world not lend credence to the fact that no one “runs out of land”. As they say, the sky’s the limit”!

rp1
Guest
rp1
3 years 6 months ago

@gokou3: The government is on the hook for the whole damn housing bubble. The Conservatives are running ads: “can we *afford* Thomas Mulclair (NDP)” ? Where did they ask “can we *afford* the 600 billion dollar liability that sustained high house prices for a couple of extra years” ?

southseacompany
Member
southseacompany
3 years 6 months ago

Rennie is focusing on the echo boomers as the next buyers. Boomers have money, they will give their children money. The echo boomers may not sustain the market and the prices we now have, but they are obviously the next in line to buy homes. So this is not much of a brainer. But it is interesting that he is shifting away from HAM as an ongoing source of buyers.

Extend and Pretend
Guest
Extend and Pretend
3 years 6 months ago
@rp1: Instant Homes Their 30 story prefab 360 hour timelapse is here: http://gizmodo.com/5873962/amazing-timelapse-of-30+story-building-made-in-only-360-hours I wonder if they might be onto something. Some negatives could be the design lacks concrete foundation, parking garage, and maybe has acoustical isolation problems between floors? On the other hand it is cheap and responsive to market demand. If there was more competition in construction like this, supply would start to erode the demand price, wouldn’t it? Part of the problem in Vancouver are these ridiculously long approval and construction times. If it took weeks instead of years to bring new housing into the market, mortgage… Read more »
patriotz
Member
3 years 6 months ago

@southseacompany:
“Boomers have money, they will give their children money.”

Every study I’ve seen says they don’t. What they have is the ability to borrow against their houses. For now.

patriotz
Member
3 years 6 months ago
@HAM Solo: ” If you think the Tea Party was nutty, wait for the Maple Syrup party to take over.” The Tea Party is really a reaction to the perception – which is turning out to be correct – that “minority” Americans are becoming the new majority. Their economic positions – if you can call their mass of contradictions positions – are just a fig leaf. It’s also not a party at all but a wing of the Republicans. Our present day Conservatives have similar people, it’s just that Harper has the authority (which nobody in the US has) to… Read more »
mac
Member
mac
3 years 6 months ago

How long until Vancouver’s building standards new low reaching for new heights a la China?

http://tinyurl.com/bete3gm

Neptune
Guest
Neptune
3 years 6 months ago

Rennie ” he says the majority were under 28 years old. He believes it is the young demographic that is fuelling the sales of projects”

Give me a break. The majority could have been young rich Asians. You only have to live in this City to know where the money is coming from. CHINA.

mac
Member
mac
3 years 6 months ago

@mac: Whoops! I see rp1 already posted that.

Extend and Pretend
Guest
Extend and Pretend
3 years 6 months ago

@mac: Prefab construction.

I commented on the benefits of that construction technique just a few posts below yours with the same link!

Do you have further knowledge about it? I’ve seen prefab two story steel home kits that work quite well. Steel is more expensive than wood, but there is no cutting or nailing. The whole thing is screwed together very quickly and is very solid against high winds. Also, there is no creaking, warping, or imprecise walls/surfaces etc like a wood nailed building.

Landbaron
Guest
Landbaron
3 years 6 months ago

Overheard on the Skytrain today:

“A 19 yr old friend of mine just got an inheritance from his grandparents. He’s using it to put a down payment on a presale while still living at his parents place. He figures he can flip it for a profit, or just move in once it’s built.”

Umm, I think he forgot about the mortgage etc. once completion hits.

Yikes!! is all I can say

pricedoutfornow
Guest
pricedoutfornow
3 years 6 months ago

@Landbaron:

I think he didn’t get the memo that condos are often selling for less once completion comes around, not more. This is what happened to some friends of mine who decided to invest in the Olympic Village.

mac
Member
mac
3 years 6 months ago

@Extend and Pretend: No. I don’t know as much about it as you do. All I know is that once it comes here the trades will cut corners and somehow the thing will leak and fall over but the real estate agents will proclaim it as new rainproof technology. Ta da!

But it does sound interesting, if somewhat rushed.

RaggedyRenter
Guest
RaggedyRenter
3 years 6 months ago

Just saw the advert for The Rolston (therolston.com). This has to compete for the worst ad ever
tagline: OTHER BUILDINGS WANT TO HAVE SEX WITH IT
It’s a rarity that a building can evoke an emotion… let alone entice other buildings.

WOWSERS
Guest
WOWSERS
3 years 6 months ago

Canada line poorly planned, such small platforms, it’s already near capacity, just wait 10yrs when the cambie corridor is full, it will faster to walk downtown,marine condo tower buyers enjoy your landfill nearby stinky

Landbaron
Guest
Landbaron
3 years 6 months ago

@pricedoutfornow

hehe, I rent in the OV (thank god!) and it’s amazing how many problems are happening here. Parkades/buildings being re-sealed, roads being re-built, floods (just one the other day), and more!

The Salt building is being rented out every weekend like it’s a night club, and sometimes during the week. Not that I’m against that (I like to have fun ;), but as a buyer I would be pissed!

mac
Member
mac
3 years 6 months ago

@RaggedyRenter: No! That’s pathetic. Where’s CondoHype when you need him?

Eddie
Guest
Eddie
3 years 6 months ago

Miss BPOM too.

“McGarret is missing”

Chabar
Guest
Chabar
3 years 6 months ago

@Neptune:

What all those young Chinese are going to do here anyway? They are totally unemployable and not interested in any social aspects that this city has to offer. Just pure waste of human resources at the wrong place.

paulb
Member
3 years 6 months ago

New Listings 133
Price Changes 90
Sold Listings 106
TI:17275

http://www.paulboenisch.com

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