98 James St S | 112.5 m | 34 fl | Planning

[SteelTown]

Usually 70% is the magic number before construction to start. But seeing they are at 60% and having a Labour Day sale they shouldn't have a problem getting 70% before the end of the year.

[King&James]

^ that is what I'm thinking. Even a mild advertising push noting they are near the threshold for a shovel will get them there.....the pre construction sale.

[davidcappi]

I don't see why they can't go ahead with 60%. It's easier to sell units that are finished anyways. Plus they might have a retail client in the space already which means they wouldn't need to get to 75-80%

[drpgq]

Originally Posted by davidcappi

I don't see why they can't go ahead with 60%. It's easier to sell units that are finished anyways. Plus they might have a retail client in the space already which means they wouldn't need to get to 75-80%

Don't the banks require 70% to give financing? Anyways, I'm glad this project is going ahead. I was a little skeptical, given the height and the company behind it, but glad that I was wrong.

[lucasmascotto]

There is no legality surrounding the notion that a condo must be 70% sold in order to build. Its just a general practice adopted by developers to be assured that they'll turn a profit if they construct the building. Toronto is notorious for putting up condos with hardly any of the units being sold.

[king10]

Didn't Vranich finance 150 main on his own dime and started construction before any condo units were sold?

[LikeHamilton]

None sold, 20%, 50%, 70% or 100% it is all dependent on who is financing a project. Banks, institutional money, developer, private, government or combination. There is no law for financing a project.

[davidcappi]

I am starting to think buyers looking in Hamilton aren't digging the condo tower model of housing. I feel like most out of town buyers, as well as buyers already living in the city are more interested in Hamilton's low/mid rise heritage stock if they want to live in an apartment building. Either that, or they wait and buy a house.

I think it's crazy that some of these condos have been selling for what seems like ages and haven't reached any sort of milestone/construction. Meanwhile, developments like Harbour West, Brownstones, Corktowns/Beasley Park Towns sell out in weeks or less. Obviously less stock, but way way way way way more demand.

[Katrillion]

The Royal Connaught is doing better because of it's historical history I believe.

[flar]

I think houses are the main reason to move to Hamilton at the moment.

I know a lot of younger and older people who prefer condos, for lifestyle reasons, but I'm not sure lower Hamilton would be the first choice for many of them.

[davidcappi]

I know a lot of younger and older people who prefer condos, for lifestyle reasons, but I'm not sure lower Hamilton would be the first choice for many of them.

Yeah definitely. That's why I think smaller boutique condo projects will do better in Hamilton.

[king10]

Originally Posted by davidcappi

Yeah definitely. That's why I think smaller boutique condo projects will do better in Hamilton.

Agreed. in the 3 to 10 story range. I think they would do well in Hamilton.

[King&James]

With 750,000 residents, and a westerly surge of Toronto bargain seekers, surely Hamilton is at the tipping point where we will see some high rise condo development. Decent product, pricing and location will see some profile projects come to fruition. Lots of space for a full spectrum of development, as long as there is confidence in the community or micro market.

[Beedok]

Originally Posted by davidcappi

I am starting to think buyers looking in Hamilton aren't digging the condo tower model of housing. I feel like most out of town buyers, as well as buyers already living in the city are more interested in Hamilton's low/mid rise heritage stock if they want to live in an apartment building. Either that, or they wait and buy a house.

I think it's crazy that some of these condos have been selling for what seems like ages and haven't reached any sort of milestone/construction. Meanwhile, developments like Harbour West, Brownstones, Corktowns/Beasley Park Towns sell out in weeks or less. Obviously less stock, but way way way way way more demand.

These large projects take a while. Ottawa or Toronto have plenty that take time to get going, and Toronto being so close causes the competent local developers to focus their money where they see an easy profit. The Hamilton projects still mostly seem to sell out at a good speed.

[thmx]

source

[Jon Dalton]

With 80% sold you'd think there would be shovels in the ground already.

[Berklon]

I wonder what percent of the 80% who bought are speculators.

[Beedok]

Originally Posted by Berklon

I wonder what percent of the 80% who bought are speculators.

Probably fewer than in Toronto or Vancouver. That's my guess based off relative profiles and reputations.

[HillStreetBlues]

Originally Posted by Beedok

Probably fewer than in Toronto or Vancouver. That's my guess based off relative profiles and reputations.

Are we including amateur landlords in the definition of "speculator"? I know someone who purchased a unit here with the intention of renting out and, from what he said, he's far from alone. A lot of talk I had to listen politely to about expected rents and so on. To me that's speculation, but he isn't looking to flip the contract or anything, he will take possession and own it for some period of time.

[Beedok]

Originally Posted by HillStreetBlues

Are we including amateur landlords in the definition of "speculator"? I know someone who purchased a unit here with the intention of renting out and, from what he said, he's far from alone. A lot of talk I had to listen politely to about expected rents and so on. To me that's speculation, but he isn't looking to flip the contract or anything, he will take possession and own it for some period of time.

I wouldn't. To me the speculators are just the ones looking to sell when prices go up. The would be landlords are a different group, after all their units usually get filled up by someone.