Richards - 1066 Richards St. - selling briskly since relaunching with new prices in May
Lena Sin
Province
Sunday, July, 26, 2009
Richards has just proved there's still life after the deep freeze.
Following a dismal winter in which B.C.'s housing market came to a standstill, the Richards condo project was the first downtown Vancouver development to take the plunge and attempt a pre-sale amidst economic turbulence this year.
The — paid off: With 80 per cent of the units sold, Richards has just become the poster boy for pre-sale success during economic uncertainty.
"The majority of it sold in two-and-a-half weeks," says Bob Rennie, whose firm Rennie Marketing Systems is handling the sales.
It's a complete reversal from the picture in September 2008, when Richards, located at Richards and Helmcken, attempted its first launch to depressing results.
At an average asking price of just under $800 per square foot, only 32 units sold.
"By the time we were approaching September '08 there was just this huge, hard stop in the market. We only got to 32 sold. So then we just sort of manned the presentation centre, trying to make a decision," said Rennie. " We went to all of our developers and said if you haven't started building, abstain. Nobody could've predicted what was going to happen."
The U.S. banking crisis had hit B.C. hard, with local developers running out of cash as Canadian and U.S. banks turned off the credit tap. Meanwhile, a global recession was setting in and the U.S. housing market was showing no signs stabilizing.
Rennie believes the global financial crisis of 2008 represented a major economic shift.
So, in order for business to continue, developers needed to make a similar shift.
In the case of Richards, that came down to one key factor: Price.
Today, the units are priced at an average of $600 per square foot, a price drop made possible by lower construction costs.
Rennie believed the time was right to relaunch in late May as there were few developments for sale in Downtown Vancouver and there were signs that consumer confidence was returning.
The timing proved to be right on track. There are now just 38 units still available out of 226.
Francesco Aquilini, owner of the Vancouver Canucks, is the developer behind Richards, which is targeting first-time buyers attracted to the Yaletown location.
The building will be located on the same site of Vancouver's long-standing iconic nightclub, Richard's on Richards, which had its last show on Sunday. (The club will be moving to a new location on Seymour Street.)
The remaining condos available range in size from 607 sq. ft. to 1,096 sq. ft., and are priced between $349,000 to $488,900 respectively. There are also several townhouses available, ranging in size from 1,055 sq. ft. to 1,235 sq.ft. They are priced between $599,900 to $633,900.
The only downgrade made to the suites to keep prices down was a switch from designer Eggersman kitchen cabinets to a no-name brand that features the same rich, walnut colour and soft-close cabinetry to prevent the slamming of doors.
In addition to building the 19-storey concrete-and-glass tower, Aquilini Development is also restoring two 100-year-old heritage homes that currently front onto Richards Street. Until recently, one of the houses belonged to Linda Rupa, a long-time resident who bought her yellow house in 1962 for $16,000. After holding out for years, Rupa relented two years ago and sold her property for $6 million.
Rupa's former home and another heritage home will be restored and moved to the corner of Richards and Helmcken, forming a row of heritage homes on Helmcken that pay homage to a Yaletown of the past.
The two houses are zoned live/work and are asking $1.379 million and $1.5 million.
The Facts
What: Richards, 226 condos and townhouses and two detached heritage homes.
Where: 1066 Richards St., Vancouver
Builder/Developer: Aquilini Development
Sizes: Remaining condos, 607 sq. ft. to 1,096 sq. ft; Townhouses, 1,055 sq. ft. to 1,235 sq. ft; Heritage homes, 1,489 sq. ft. and 1,783 sq. ft.
Prices: Remaining condos, $349,000 to $488,900; townhouses, $599,900 to $633,900; heritage homes, $1,379 million and $1.5 million.
Open: Presentation centre is currently being moved. Please call 604-688-2875 for details.
More info:
www.richardsliving.com
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