PM Condo Crumbs
- excerpts from the BILD Condo Forum Oct 22/10
If you think that all is doom and gloom for the condo market, then perk up those ears and listen up, because according to Barbara Lawlor of Barker Real Estate Incorporated, you couldn’t be more wrong! With over 11,500 condo sales in the first half of this year, Ms. Lawlor says she’s feeling positive about the last quarter of 2010. In fact, we could even be in a position to call it our 3rd best year, ever.
Here are a couple other points of discussion from the forum:
1) Who is buying? We shouldn’t be fearful that a high percentage of purchasers are actually investors. These investor buyers help us bring these projects to market. Without their investment, we’d be hard-pressed to get condo projects off the ground. Of note: the average ages of these condo buyers are older than we thought: they are between 42 and 47 years of age, with about 1/3 of them being women. We should look at first time condo buyers as potential 2nd and 3rd time buyers as well, as these buyers often desire more space later on down the road.
2) Investors- Good or Bad? According to Jim Ritchie of Tridel Corporation the majority of condo buyers have been mainly investors. But why is that a bad thing? Investors are viewing condo development as prime investment opportunities – and they’re right. Very few purpose-built rental properties are being built now, and these condominiums provide new rental opportunities. Renters have a desire for newer housing and amenities – just like buyers. This helps replenish the rental market, which is sustained by the high rate of immigration into the city. Therefore investors are first in line to buy these new units at “wholesale” prices, only to turn around and rent them out or resell them at retail prices.
3) Brokers and agents are your friends! As with most new openings, there is usually a special day or period where we invite in brokers and their customers to give them special pricing and first crack at the best units. Well those purchasers who have to wait for second pickings are smartening up and using their own agent now to get those better prices and better units. Additionally, the high volume of immigrants is also a factor in the ever-increasing number of agent driven sales. The fact that their agent can speak their native language gives them an added level of comfort and freedom to discuss freely with the sales reps present.
4) You aren’t just selling hundreds of individual units; you’re selling a Vertical Community. And what is one of the most important features of any community? Amenities. Now we’re not talking about just the surrounding amenities (those are important too!) but the actual building’s amenities. Condo owners need places in their building other than their 500 sq.ft. unit to feel at home in. Therefore indoor and outdoor amenities are critical to the lifestyle and livability of the condo. Health and fitness amenities are a ‘must-have’, non-negotiable. Lounges with free WIFI, multiple movie rooms, fitness rooms and party rooms are critical. Foregoing penthouses for communal areas, bars or lounges may seem like leaving money on the table, but can actually pay off in the long run as they are viewed as rewards and benefits for moving into the condo.
5) People actually LIVE in these units! Hence, there needs to be actual livable space such as food preparation area, and closet space for a vacuum. Furniture plans are a good idea and can show buyers how small condo spaces can accommodate furniture, so it’s a good idea to use them.
