Seems that re-sale real estate isn't the only property being discounted 30% or more right now.
Above is a flyer for the condo development 'Headwaters' in South Surrey. It's a multi stage development in the mushrooming condo zone that is currently transforming the South Surrey area, a suburb of Vancouver.
As you can see from through the windows of one of the units, the street is one big orgy of development.
Yesterday faithful reader CJM posted in the comments section that he had received an email announcing 30% off new units in the development. From the text of the announcement, it seems the developer is desperate for more pre-sales to move forward with construction:
SAVE UP TO $140K ON NEXT 5 HOMES SOLD
Anxious to break ground this Spring on the final phase of Headwaters in desirable South Surrey, the developer has just decided to offer even more SIGNIFICANT savings on the next 5 homes SOLD.Here's a Sampling of our Limited-Time Savings. Act Now!HOME HOME TYPE 2012$ SALE$ YOU SAVE
#111- 3 Bed $469,900 $329,900 $140,000#216 - 3 Bed $459,900 $359,900 $100,000#316 - 1 Bed $269,900 $219,900 $50,000#311 - 2 Bed $345,600 $274,900 $70,700#412 - 2 Bed $385,000 $319,900 $65,100Amazing Design Finishings, Listed at Unbelievable Prices!
The developer says he's "anxious to break ground this Spring on the final phase?"
Sounds more like he's desperate to get this thing done and get out before the market gets really bad come spring.
How long before 30% off turns into 40% off?
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I haven't heard any discussion by the economists and politicians about the tidal wave of debt that is engulfing this country.
ReplyDeleteThe following information is from a Statistics Canada credit market summary data table as of the end of June 2012: (The debt statistics for Canada up to the end of September 2012 will be released in about 4 weeks by Statistics Canada).
Total debt in Canada as of the end of June 2012 (bottom line of the data table) was 5.1 Trillion $
From the end of June 2011 to the end of June 2012 the total debt in Canada increased by 209 Billion $.
For that 12 month period the total debt in Canada increased at a rate of approximately 572 Million $ per day.
I would have to agree with Karl Denninger when he said (a few years ago) "You cannot expand credit at a rate faster than GDP forever without suffering a financial panic and collapse".
http://www5.statcan.gc.ca/cansim/pick-choisir?lang=eng&p2=33&id=3780122
Anyone has evidence that the original price was "true" (i.e. the developer didn't put out an unrealistically high price and slash it by 30%?)
ReplyDeleteWhat is a "true" price?
DeleteYes developers put unrealistic prices on units, that's how they work. 30% off means nothing except to the sheeple who go "oohh that sounds like a good deal"
Same as the 10% return on deposit, $100G price drop guarantee, etc. etc.
Point is, they need suckers to keep buying.
I was looking at this project from the beginning and have pricing on one of their units - $527,000 for 1279 sq ft. The prices shown for 2012 are in line.
DeleteCJM
Wondering if at this point in the cycle, new developers will be the most interested in heavy discounting in order to deal with their sunk costs on a timeline.
ReplyDeleteEven with these "discounts" the prices are still outrageous! This is located in outer Surrey after all...
ReplyDeleteseriously, what fool is going to sign up for these things anymore? it's over. i heard the other day that 'stable' is the new 'up'. If that's so, then strata is the new timeshare.
ReplyDelete