Tues Post #2: How crazy is real estate speculation in Vancouver?

You gotta love the chutzpah of a bubble market.

The video above is for 1490 Balfour Avenue, a mansion in the toney Shaughnessy neighbourhood of Vancouver.

It's 8 bedrooms, 5 bathrooms and 3 half bathrooms. A massive 9,414 square foot house on a 17,827 square foot lot.

The current assessed value of the property is $3.05 million.

So how crazy is the speculation in our market?

Well...  in May of 2011 this house was acquired for $2.98 million.

In January 2012 it was listed for $5.98 million!

(Really? You're trying to flip a home for a $3 million profit?)

In March 2012 the asking price was 'reduced' to $4.88 million.

Recently the asking price was 'reduced' again and the current asking price is $3.988 million. Here is a screenshot of the current listing (click to enlarge):

If it sells for that price, it still amounts to a $1million gross profit in one year. Clearly the buyer was hoping to take advantage of HAM (Hot Asian Money) and the evaporation of that market has cut the bottom out of this buyer's wild expectations.

You have to wonder if the property is marketed as '40% off'?

Such a deal, eh?

Hat tip: gse36

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