This is Parc Riviera, a riverfront project in north-east Richmond. It's a 20-acre master planned community with five acres of parks and riverfront trails.
The developer is now offering pre-construction sale of condos starting from the mid $200,000’s. The selling prices for the first phase of condos and townhouses at Parc Riviera could set the stage for Richmond home prices to come down.
The developer’s ad placed in Vancouver 24 Hrs and Richmond News advertised townhouses selling from $369 per sq ft, and condos from $386 per sq ft. Current selling price per sq ft for resale wood-frame condo in Richmond is around $405 to $420 per sq ft. The pricing trend for new developments in Richmond can be expected to follow similar offers as competing projects are forced to adjust their selling prices. Resale homes will be under pressure to compete for buyers.
Home prices at Parc Riviera are priced some 10% to 15% lower than current selling prices of resale condos and townhouses in Richmond. Current resale lowrise wood-frame condos and townhouses are priced from $435 to $475 per sq ft. Recent sales of condos and townhouses in Richmond were found to be between $400 to $450 per sq ft. The overhang of too many homes chasing too few buyers could only mean lower selling prices for home sellers. Motivated sellers taking low-ball offers are setting the trend for lower prices in the coming months.
More significantly what will be the reaction from all those condo owners with overpriced units languishing on the market right now? Who will pay those high asking prices when new development's are coming in significantly lower?
Realtor Arnold Shuchat's description of an underwater market in Richmond for SFH's may be about to intensify by spreading to the condo market too.
Click 'comments' below to contribute to this post.