“Developers must find a fresh financing formula as prices for shared hotel units in British Columbia prove a fiscal bust for investors”
- tagline for ‘Hotel condo prices plummet’, Business in Vancouver Magazine, 21 Feb 2012.
[Full article awaited; hat tip Clipper]
“The hotel/condo pricing article is completely correct. Prices at ‘Shangri La’ have been dropping 20-30 percent in the last year and now 2 units on the 2nd to top floor just came on the market at way under what anyone else in the building was asking and now other people have to lower their units at least 1 million to even be competitive.”
- jj at VREAA 22 Feb 2012 5:07pm
So perhaps the very, very high end is showing strain; albeit in a specific property line.
- vreaa
“have to lower their units at least 1 million”
Oh woe is them, only a million for a condo, and not a penthouse either. Methinks there is a ways to go yet.
[Our interpretation was that they were having to drop prices by a million, not to a million.
Regardless -- millions, shmillions... (The Single Vancouver RE Currency Unit is 'One Million' - How much is that? 1.5?). -ed.]
Holy cow, I think you’re right. So the actual reduced price is most probably way over 1 million still. Even better…
I meant lower A million not to a million. The units that came on the market last week were 5902 and 5903. They previously sat on the market for over a year at 5 milllion for 5902 and 4.2 million for 5903. They came back on the mark at 4.2 for 5902 and 3 million for 5903. Unit 4603 is current priced at 2.9 million and has been on the market for 2.5 years!!!, so to be competitive with a unit 13 floors higher, they are going to have to lower the price at least a million if they want to sell. The pricing of 5902 at 4.2 million means that 4902, 5502, 5702 and 5802 which are all priced at 4.5 million or above will have to be lowered 800k-1million to even have a chance at selling. Oh and the maintenance fees just went up from 1500$ to 1850$ as of January.
If they do not sell in a hot market they might just as well be worth zero. There is no difference between zero and 5 million when no sale materializes. It is all a loss.
“They previously sat on the market for over a year at 5 milllion for 5902 and 4.2 million for 5903.”
Wow, for a glorifed apartment. Insanity.
Um what the heck is a “shared hotel unit”? Sounds racy.
http://video.ca.msn.com/watch/video/the-condo-market-in-canada-02-21-12-8-20-am/jvk2gtt8?from=sharepermalink&src=v5%3ashare%3asharepermalink
“BNN speaks with Finn Poschmann, Vice President, Research, C.D. Howe Institute and Sheryl King, Canada Economist, Bank of America Merrill Lynch about the state of Canada’s condo and housing market and how much taxpayers could be on the hook for if the market starts to cool faster than expected.”
Taxpayers won’t be on the hook because of a cooling housing market (that is inevitable). They will be on the hook because of the insane bubble binge of the preceding decade.
“how much taxpayers could be on the hook for if the market starts to cool faster than expected.”
Whoa, Taxpayers on the hook? What does that mean? I pay for health, roads, and military. Anything else is free market including banks and insurance.
These types of Real Estate vehicles have been around almost 30 years and I have yet to see one person do “really well”. Actually from personal experience (parents bought one in the 80′s) I have only seen people LOSE money.
The purpose of these units is to lower the per unit cost of the hotel itself, as well as to take a “management fee” for renting out the condo. Bassically they find stupid people and sell them on the “propfitability” of owning a hotel unit….
The Shangri-la mess is another anecdotal story that points to mucho problemos in LaLa land.
17 months inventory. Taxes and fuel are heading to the sky, and people that have LOC’s don’t seem to realize the loans are call loans.
The Bank can call and ask for funds, just at the wrong time.
Anyone who buys pre builds in this City, are going to lose their pants.
BC Provincial debt is balooning, and yet Minister Falcon will balance the budget in time for the next election.
As if.
You carry debt, you are going to be unhappy, and the rush to get in at the top, is simply explained. Human beings are herd animals.
This will not end well.
“So perhaps the very, very high end is showing strain; albeit in a specific property line”. — vreaa
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Let the record show that some of the finest homes in Vancouver (in and around Shaughnessy) were turned into boarding rooms during the Great Depression. Some were lost to taxes, others to business failures. Many remained rentals, subsidized accommodation, group homes, community retirement residences and city owned low cost shelters for the handicapped managed by non-profits well into the 1980′s. It has only been since the late 90′s that many homes in these parts of the city were retaken by serious money and the elite of our society and turned back into private residences. Even to this day, some of the old mansions remain shelters of one sort or another. One was once the property of Ronald McDonald House although I do not know if they are still there.
But I am referring to the old days. These cycles never repeat. Right?
See the “Vancouver Book” for a more concise history of those homes.