Vacant Condos Create Unease in Calgary Market
Filed Under Buying, Condos, Developers, Listings, New Homes, Selling, calgary condos · Tagged: Calgary Real Estate, Condominiums, condos in calgary, Developers, new condo, vacant condos
“Many buildings in Calgary began construction with less than 50 per cent of the units pre-sold,” said the Altus Group Economic Consulting report.
There are indicators of a “much more serious problem for Calgary,” said the Altus Group. Those indicators include a high level of condominium starts in 2008 (5,335 units) and a high level of condos under construction. The pace of condo starts has also declined “dramatically” since the end of July, but “very few projects in Calgary have been formally cancelled so far.”
The biggest cancellation was the two-tower downtown project known as Gateway Midtown.
“Excessive investor activity has also been a concern in Calgary,” said the Altus Group report. “While the percentage of condominium apartment units offered for rent declined in Calgary between 2007 and 2008, the vacancy rate rose significantly from 0.7 per cent to 3.5 per cent.”
The report said there is “clearly a large oversupply of product” in Calgary and “more project cancellations would help move the market back into balance more quickly.”
One of the reasons overbuilding tends to happen in a number of markets is due to the difference in construction times between single-family homes and condos, said Robert Feldgaier, senior director with Altus Group.
“With ground-related housing, it’s a lot easier to adjust construction to changing market conditions, whereas with the lead time for apartment construction and the actual time to build a building, depending on the market, there’s a significantly longer lag in adjusting to the market conditions,” said Feldgaier.
In Calgary, most of the projects that have been on the market have proceeded to construction even if they haven’t achieved even half of the units being sold, he said, adding “there’s not likely to be too many new projects starting this year.”
The lower level of multi-family starts in Calgary has been a trend since the middle part of last year, said Lai Sing Louie, senior market analyst in Calgary for Canada Mortgage and Housing Corp. The number of condos under construction hit a peak, and record, of 10,746 units in Calgary in May 2008, he said. Last month, that number had dropped to 7,351 units.
Louie said the percentage of condos absorbed, or moved into, at completion in January was 82.5 per cent. In September, the percentage was 100 per cent.
Also, in the resale market the CMHC tracks new and vacant listings. In January, 8.1 per cent of condos on the resale market were new and vacant. In November, it was 9.5 per cent, said Louie.
He said there were only nine condominium starts in January and for the City of Calgary there were zero apartment building permit applications for the month.
The Altus Group report said that with mortgage rates already near historic lows, unlike the last recession, “developers need to ensure that their product is priced appropriately since affordability will be key to attracting buyers.”
“Developers should look for opportunities to target younger owner-occupant buyers seeking attractively priced product as well as empty nesters in neighbourhoods where there may still be relatively few projects from which to choose,” said the report.
Click on Image above to view original source from The Calgary Herald
New Condo Listing In Red Haus, Royal Oak Calgary – SOLD
Filed Under Featured Listing, Listings · Tagged: Calgary Real Estate, condo, Condominiums, New Condos, red haus
419, 60 Royal Oak Plaza, Calgary AB
Huge price reduction…Welcome to this top floor unit that you have been waiting for. This home boasts 9 ft ceilings, large windows and upgraded kitchen. There is ample of space in this one bedroom one full bathroom unit. This upgraded kitchen has a wall mounted oven with a countertop ceramic stove. The kitchen is truly a dream. There is ensuite laundry, underground parking, and a storage unit underground as well. The best feature of all is that this unit faces the courtyard, with a quiet location and fantastic view.
Condo Projects Outside Calgary
Filed Under Buying, Selling, calgary condos · Tagged: airdrie, black diamond, canmore, carstairs, chestermere, cochrane, condo development, Condominiums, Condos, crossfield, high river, okotoks, olds, strathmore
Below are all the ‘Out Of Town’ condo projects around the Calgary area as of Sept. 20 2008
AIRDRIE
- BREEZE AT AIRDRIE: By Generations Group of Companies. Three-bedroom townhomes or one-, two- or three-bedroom apartment-style condos from low $200,000s. At 2370 Bayside Rd. S.W., Airdrie.
- COURTYARDS OF KING’S HEIGHTS: Gardenside condos from $194,900, plus GST. At Kingsland Road in Airdrie.
- COPPERSTONE VILLAGE: By Jade Landing Holdings. One- and two-bedroom suites on the developing west side of Airdrie, across from Creekside Crossing.
- CROWN SHORES: From $212,900. Sales centre 405 Airdrie Rd.
- PATIOS OF SAGEWOOD: By Beattie Homes. Two-storey three-bedroom units.
- ZEN: By Avalon. Two- and three-bedroom townhomes. From the mid-$250,000s. Show homes at 102 2445 Kingsland Rd. S.E.
BLACK DIAMOND
- MOUNTAIN VIEW MANOR: Marketed by Ken Placsko Realty. Two-bedroom adult-condo units from $195,000.
- (Adult) WINCHESTER, THE: By Prairie Dog Development Inc. Eco-friendly, 33-unit luxury development near Sheep River. At 415 4A St. N.W., Black Diamond.
CANMORE
- BLACKSTONE MOUNTAIN LODGE: By Assured Developments. Fully-furnished condos from $414, 900 to $539,900. At 170 Kananaskis Way, Canmore.
- FAIRHOLME VILLAGE: By Devonian Properties. From 1,151 1,343 square feet. Sales centre at 743 Railway Ave.
- LODGES AT CANMORE: By Devonian Properties. Condos from mid-$200,000s.
- MOUNTAINEERS VILLAGE: By Alpine Homes. From $490,000. Show suite at 104 Armstrong Pl. (Three Sisters Mountain Village.)
- SERENITY RIDGE: By Swan Group Inc. Maintenance-free townhomes from 1,000 to 1,200 square feet. At Three Sisters Mountain Village.
- SOLARA CANMORE: One-, two- and three-bedroom apartment-style condos. Fractional ownership. Show suite at 1205 Bow Valley Tr.
- TIMBERLINE LODGES: By Alpine Homes. From 1,000 to 3,200 square feet. From $400,000s to $1.6 million. Show suite at 104 Armstrong Pl. (Three Sisters Mountain Village).
CARSTAIRS
- VILLAS AT STONEBRIDGE GLEN, THE: By Gold Seal Homes. Executive villas next to the Carstairs Golf Course. From 1,225 to 1,700 sq.uare feet. From $290,000 to $450,000. Show suite open.
CHESTERMERE
- BROWNSTONES OF RAINBOW FALLS: Two-storey townhouse condos at 203 Rainbow Falls Dr.
- CHALETS OF RAINBOW FALLS: By Lionsworthe Homes. Two- and three-bedroom units. From 1,400 to 1,600 square feet. Show home at 164 Lavender Link. From $330,000 to $400,000, plus GST.
- GEORGIAN VILLAS AT RAINBOW FALLS: By Urban Escapes by Truman. Bungalows starting at $436,000. At 300 Westcreek Blvd.
- WESTMERE GARDENS: By Reid Built Homes. Semi-attached estate homes at 147 Springmere Rd., Chestermere. Show home open.
CROSSFIELD
- ARCHES, THE: By Crossfield Affordable Housing Inc. Apartment-style condos. One-bedroom, $154,900; two-bedroom, $189,900. At Main Street, Crossfield.
COCHRANE
- ALORA IN SUNSET RIDGE: Aspire Condo Living by Jayman. Four phases. At 201 Sunset Dr.
- LAREDO PLACE: By Trico Homes. At 28 Heritage Dr. in Cochrane. From 1,253 to 1,669 square feet. Two- to three-bedroom unit from $299,900, plus GST.
- RANCHEROS: By CalBridge Group Inc. Maintenance-free bungalow villas at 89 Sunset Square, Cochrane. Starting from $412,800. Sales centre at 101 Sunset Dr., Cochrane.
- SUNSET POINTE: By CalBridge Group Inc. An exclusive maintenance-free enclave of townhomes at 307 Sunset Point, Cochrane. Three floor plans available. Show suite open Sept. 18. Walkouts starting from $390,000s.
- VILLAGE, THE: By CalBridge Group Inc. Maintenance-free, luxury apartment-style condos from the low $200,000s. From 710 to 1,434 square feet, and loft penthouses. Variety of floor plans. At 15 Sunset Square, Cochrane.
HIGH RIVER
- MURALS OF HIGH RIVER, THE: Three-bedroom townhomes in Montrose, High River. Sales centre at 1403 Montrose Ter. S.E. (in Greenboro show home). From $320,000s.
- (Adult) VIEW AT SUNRISE, THE: By Enzo Developments. Adult-lifestyle condos in two-bedrooms and one-bedroom-plus-den. From $199,900. At 43 Sunrise Loop, High River.
OKOTOKS
- (A) CALVANNA VILLAGE: By Calvanna Developments. Maintenance-free living for 50-plus lifestyle. Located on Woodgate Road, behind Safeway.
- DRAKE’S COVE: By Rockford Ventures. From $280,000s. At 105 Drake Landing Common in Okotoks.
- HARVEST GATE: By Trico Homes at 27 and 29 Cimarron Vista Gardens in Okotoks. Three-bedroom units from 1,235 to 1,499 square feet. From $310,000 to $344,00, plus GST.
- PENNCROSS: By Streetside Development Corp. Apartment condos starting at $226,000s. At 129 1 Crystal Green Lane, Okotoks.
- VILLAS OF CIMARRON ESTATES, THE: By Crossley Homes. Executive villa bungalows from 1,200 to 1,600 square feet. From $395,000. At 10 Cimarron Estates Gn., Okotoks.
- TUCKER HILL: By Streetside Development Corp. Bungalow villa duplexes and triplexes, From the $290,000s. At 200 and 202 Tucker Blvd., in Westmount, Okotoks.
OLDS
- CORNERSTONE VILLAGE: ByLeaside Development Corp. One- and two-bedroom condominium apartments from 856 to 1,310 square feet. From $217,900 to $332,900. At 4403 67A Ave. in Olds. Sales centre on site.
STRATHMORE
- (Adult) RANCH ESTATES: Gated, land-lease community for manufactured homes. From $75,000 to $200,000. Sales office at 100 Ranchwood Lane.
Condominiums Achieve Unprecedented Favor
Filed Under Buying, Condos, Real Estate General, Selling, Special Reports · Tagged: calgary, Condominiums, Condos
After more than three decades of slow but steady growth, the condominium concept has finally clicked with Canadian homeowners. The lifestyle has proven to be a solid investment in housing markets across the country, chalking up some of the most impressive gains in residential real estate in 2007, according to the RE/MAX Condominium Report.
Their universal appeal is substantiated, with every market reporting increased momentum in condominium sales volume over 2006 levels. In fact, 80 per cent of markets surveyed reported double-digit gains in sales year-over-year, with 53 per cent reporting increases over 20 per cent. The greatest growth was experienced in Canada’s small to mid-sized markets. Leading the country, in terms of percentage increase in sales so far this year, are Kitchener-Waterloo (+59%), Regina (+57%), St. John’s (+54%), and Saskatoon (+33%).
The white picket fence, sprawling green lawn and tidy urban bungalow has become an unattainable ideal for many first-time buyers—especially in the West. By necessity, condominiums have become the only practical means to homeownership for a growing segment of the population. Today’s entry-level purchasers aspire to manageable mortgage payments, sunset city views, and the non-stop action and amenities of central core living, all packed into 600 to 800 sq. ft. The momentum of the market in recent decades has redefined the home buying process.
While price appreciation on freehold properties, in particular, was the primary factor in the upswing, the strong desire among baby boomers to lead an active, carefree lifestyle has also driven the concept to unprecedented popularity. The RE/MAX Condominium Report identified Greater Vancouver as the strongest market in the country – where close to 60 per cent of all residential sales now involve a condominium. Condominium presence is also on the rise in centres such as Toronto, Edmonton, Calgary, Regina, Ottawa, and Hamilton-Burlington, where condos now represent 20 to 30 per cent of all MLS sales.
Deteriorating affordability levels in major Canadian centres have lead to the resurrection of the condominium lifestyle in recent years. Condominiums are clearly the answer to the skyrocketing cost of land and shelter that has all but eradicated the dream of homeownership for many first-time buyers.
Condominium values were also up from coast-to-coast in 2007, with all major markets reporting an increase in average price. Thirty-three per cent of cities surveyed reported double-digit price appreciation. The most dramatic hikes were seen in Western Canada’s red-hot housing markets, led by Saskatoon (+24%), Calgary (+22%), Edmonton (+19%), Kelowna (+16 % for town homes, +12% for apartments), Vancouver (+14 % for town homes, +11% for apartments), and Victoria (+9% for town homes, +12% for apartments).
At the top end of the market, condominium ownership has been equated with lifestyle. Throughout 2007, aging baby boomers fuelled demand for luxury condominium units. Upper-end activity was reported to be on the rise in all markets examined, with the greatest appreciation occurring in Edmonton (+154 %), Greater Toronto (+98 %), Victoria (+85 %), Winnipeg (+58%), Vancouver (+49%) and Kitchener-Waterloo (+39%). The maintenance-free factor, the ability to travel and to enjoy the best the city has to offer—from restaurants to recreation—were citied in overall condominium appeal.
In years past, there seemed to be a ceiling in terms of what buyers were willing to pay for this type of product. Widespread acceptance has seen that philosophy tossed out the window. In the upper-end especially, buyers have demonstrated a willingness to set new benchmarks, and in some cases, are spending more than what a detached home might cost. Multiple offers, once unheard of, have become a reality in some centres.
New benchmarks for the most expensive apartment-style condominium units ever sold through MLS have been reported in several cities in 2007, including Vancouver ($18 million), Calgary ($3.7 million), Edmonton ($2.3 million), Winnipeg ($1.25 million), and Kitchener-Waterloo ($670,000).
Given solid demand through all price ranges, it comes as no surprise that investors have been very active in the majority of markets surveyed, hoping to snap up a piece of the pie while demand remains at peak levels. Yet, with a growing number looking for a quick return on investment, swelling inventory levels have become a serious concern in several markets, most notably in Calgary and Edmonton, and to a much lesser extent, Kelowna.
The impact of speculation, especially in Canada’s largest condominium markets, have yet to be determined, but concerns for the future are relevant. In downtown Vancouver, an estimated 50 per cent of sales activity is attributed to investors, whereas as much as 60-85 per cent of new condominiums sales in Toronto’s downtown core reportedly involved investors in 2007. This is a major factor that could influence prices in years to come.
For now, a number of market fundamentals point to increased growth in sales, prices and demand well into 2008. These include vibrant economies, Canada’s aging population, rising prices, and higher levels of immigration, to name a few.
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RE/MAX of Western Canada (1998) Inc. Condominium Report issued November 14th, 2007.
