There were rumours going around last year that Onni was having cash-flow related issues which, if true, would go some of the way to explaining this strategy of dumping unsold inventory.
Regardless of how much further one expects that the market has to go down, I don't see this type of forced/mass discounting becoming a trend for other developers.
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Condos fire sale offers up to 40-per-cent discounts
‘This is a reaction to the market that’s slowing,’ says Onni’s Evans
By Brian Morton, Vancouver SunJanuary 15, 2009 1:01 PM
in what’s being marketed as a real-estate liquidation sale, the Onni Group of Companies is offering 375 Metro Vancouver condos valued at $150 million at prices it says are discounted by up to 40 per cent from those originally advertised.
Onni executive vice-president Chris Evans said in an interview Thursday that Onni was facing high costs in carrying the units under current financing terms. “It made sense to sell our remaining inventory.”
As well, Evans said, the sale makes sense because of the slowing real estate market.
"No one could never have imagined the real estate market would drop as much as this. This is a reaction to the market that’s slowing.”
The sale represents all the company’s remaining inventory in projects completed over the past 12 months, Evans said. “And this is not a pre-sale. Every home is completed, brand new and ready to move into.”
The one-day sale will take place on March 7.
The sale includes condominiums in Richmond (Flo); Port Moody (Suter Brook — Aria 1 &2, Room Loft Living and Libra); New Westminster (Victoria Hill and The Point); Port Coquitlam (South Verde); and Surrey (Escada).
Examples of the prices include:
• Richmond — a 900-square-foot two-bedroom originally priced at $472,900, or $525 per square foot, is now approximately $360,000, or $400 a square foot.
• Port Moody — a 1,106-square-foot two-bedroom-and-den originally priced at $453,900 is now approximately $340,000, a 655-square-foot studio originally priced at $319,900 is now approximately $240,000, and a 990-square-foot wood frame two-bedroom originally priced at $419,900 is now approximately $315,000.
• Surrey — a 1,100-square-foot two-bedroom and den originally priced at $360,900 is now approximately $260,000.
• New Westminster — a one-bedroom originally priced at $270,000 is now approximately $215,000.
• Port Coquitlam — a 1,000-square-foot two-bedroom originally priced at $389,900, or $390 a square foot, is now approximately $280,000, or $280 a square foot.
Evans said some of their units were selling at the original prices. “There’s some demand for homes. The catch is that people are looking for a great deal.
“This is a rare opportunity to afford a home you thought you never could,” Evans said. “This is an extraordinary time in the marketplace,” he added, citing the combination of dropping prices and lower interest rates.
bmorton@vancouversun.com