Quote:
Originally Posted by Nathan
I really don't think they would price below 150,000 as anyone who bought that would likely be able to turn around and resell it for a profit very quickly. 150,000 would be a bit underpriced in my opinion... but the 200,000 area would be good I think. As a recent university graduate who's just starting out, something in the 200,000 area, would be great downtown... We will see though I guess. Just have to keep my fingers crossed.
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There have been numerous downtown condos in the low 200,000's that have been on the market through 2009.... several have gone to rental due to lack of buyer interest however. These are units with considerably more area than the 500-800 sq foot range also.
It suggests that getting above $200k for downtown condo is a tough sell. And with so many extra units flooding the buyer's attention, it doesn't bode well for selling 25 floors worth of units at $280k each.
However below $150,000 starts to become more tempting. As you prove, there's a certain price that attracts speculators. This is the EXACT model that's been used to develop high rise condo towers in other Canadian cities.... get the buyers on the hook for 2 or more units. That's how you sell the high number of units.
So if they start out selling at 150k and get strong interest, they can always change the price as the units start to sell out. It always looks better for a project to start off with a bang with limited time/units for pre-sale at the lower price. Doing it the other way doesn't work... start out at $280k, get no sales, then be seen slashing prices later on. Buyers don't feel any urgency, they worry about buying on speculation, and everyone wants to bargain hunt. At $150k people would be worried about whether or not they'd get the unit(s) they want or have limited selection.