Those who own a condo unit in a Whistler hotel are sitting on great potential, but at the moment the units are not showing great value.
Real estate consultant Denise Brown with Re/Max Sea to Sky Real Estate reported that a unit originally sold in the Four Seasons Whistler for about $1.1 million was recently resold for only $520,000.
“We’ve seen the prices come down significantly,” she said.
According to Brown, this segment of the real estate business is at the bottom of the cycle so prices are good right now. She said the people who are happiest in the condo hotel market are those who are in for the long-term and have made a lifestyle choice in purchasing a condo unit in a hotel.
“It is only those people who are looking for a lifestyle that own their own property in a complex that they like and believe in and want to use with their family,” she said.
Pat Kelly, from the Whistler Real Estate Company, said when condo hotel units first became available in Whistler expectations were high.
“People were buying on vision,” said Kelly. “Revenue has not met expectations in the last few years.”
According to Kelly, the lower than expected revenues produced through hotel condo units has combined with exchange rates, high strata fees, high property taxes and fixed overhead costs to drive prices down.
“The market is now valuing these things properly,” Kelly said. …
“Some of our friends to the south have had to do some pretty significant financial rationalization, which has caused them to want to sell things,” he said.
According to Brown, the people who were relying on the hotel condo units to produce high returns beyond covering all the costs associated with owning this type of property are getting out of their investments.
“It’s not anything wrong with Whistler or that Whistler is worth less,” said Kelly. “It is just that people are prepared to spend less.”
“Great potential, but at the moment the units are not showing great value.”
“It’s not anything wrong with Whistler or that Whistler is worth less.”
(This from the same guys, we’ll bet, who used to say stuff like “real estate is worth whatever somebody is prepared to pay for it”.)