SFH Developers Cutting Prices

v971425_1

2808 W 21st Ave, Vancouver Westside (V971425)
New build 2800sqft SFH on 33×123 corner lot
Offered now for $2,888,000

Hat-tip to Rob for this example of shrinking profit margins. He also writes: “Another good example of west side drop‏. This had been listed at 3.3 million for about the past 8 months…..now this week dropped to 2.88 million.”

It sounds like the plan was for two new builds on one old ‘double’ lot, a project where we’d imagine projected profit margins were quite generous. Even at $412K ‘off’, $2.888M still represents preposterously poor value for a buyer.
At what price levels does this deal become untenable for the developer?
– vreaa

17 responses to “SFH Developers Cutting Prices

  1. The adage is higher-priced properties take longer to sell due to their unique natures.

    Methinks we’re getting a wee bit carried away with these McMansions; thiis seems way too familiar with what the OC went through 4-5 years ago now.

  2. On the market for 8 months, lots of 8’s in the price. Bring on the bidding war!

  3. UBCghettodweller

    I’d like to point out that there are a number of “double” lots in this part of the city that went up for sale a in spring 2012 and haven’t moved since then. Some have been taken off the market and then relisted a couple of times.

    The thing that scares me is that those “double” lots are pretty much the average size of lots in many other Canadian cities. But you know, water and a border and not making any new land etc.

  4. So $3 million for a 2800 sqft house on a tiny lot that will undoubtedly be built low cost and in a hurry or an 8000 sqft with finer craftsmanship than $20 million dollar homes here on an acre in one of the finest family / school subdivisions in southern california?

    http://www.zillow.com/homedetails/14175-Biscayne-Pl-Poway-CA-92064/52510748_zpid/

  5. It truly is free health care for wealthy “business class” newcomers. No declared income. Offshore not traceable. MSP premiums excused due to “low” annual income. Over 55? Defer city taxes indefinitely. Gas up in Blaine.
    Those of us lucky enough to have a job pick up the slack.

    • Naked Official #9000

      Disloyal cadre, this is pure racism.

      How dare you doubt the benevolent intentions of your moral superiors in the Party? Without us, Canadians will not know how to mine coal!

      • youtoldus.so

        Dear N.O. #9000,
        My humble apologies. Perhaps reeducation is in order.
        Regarding Canadian coal mining ability: it appears that there are over 200 want to be Canadian miners lacking in the correct knowledge. More reeducation necessary.

      • The coal bit is hilarious – keep it up!

  6. Still ridiculously overpriced. Another example of non-moving double lot “homes” can be found at 531 & 539 West 18th. MLSV982566 & 567. I love seeing speculators get burned!

  7. I guess Lai’s “luxury Vancouver house” will be hitting the market soon…

    http://www.cbc.ca/news/canada/british-columbia/story/2013/02/03/bc-triad-immigration-hearingh.html

  8. Not to mention that the new house will be RIGHT on the corner of 21st and Macdonald. The woman who sold it is near on 90 years old. They’ve not knocked down the old house yet. She is a Brit, very nice. I’ve spoken to her on the bus a few times…. she sold at the height of the market. Her husband is in a nursing home and she lives around Cornwall and Cypress now. So, at least there is one good story in this!

    • Yeah right…..They’ve cashed out for $1.5mil but I but the husband is getting a provincial subsidy for the nursing home based on low income…
      I wish some one would do a piece on how many millionaires are getting care home subsidies. CPP+OAS+ GIC interest on a pile of cash; divided by 2 = income of maybe $18k/year each. Care home cost of $3,200/month is then knocked down to about $1,200/month because they are considered low-income and, unlike Britain, we subsidize care homes based on income (in the UK, they don’t subsidize until you have less than about CAD$35,000 in total assets. Pile of cash then goes tax free to a nephew in England when they pass on.
      Great system.

  9. Not to put a damper on any “feel goods” but I know the family – many hardships in their lives, including the husband’s time in Nazi internment camps. They deserve a comfortable retirement especially since their adult daughter is handicapped.

  10. vancouverbubbleman

    just think..if you bought it just a month ago ud be down a min $400 000.

  11. Coincidewntally, the New York Times real estate page has a feature on what you can get for $2.5 million in the U.S. They look like a better deal this this Vancouver home.

    http://www.nytimes.com/2013/01/31/greathomesanddestinations/real-estate-for-2-5-million.html?ref=realestate&pagewanted=all

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