Quote:
Originally Posted by Arrakis
I like this proposal but is there still any sort of market left in St John's for condos?
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Short answer would be no.
Long answer would be more nuanced. As Architype mentioned, they are bound to appeal to a certain demographic. $500,000 condos in downtown St. John's have been done and there is no market for them. However, the market right now heavily favours first time home buyers. Over 50% of sales are between $200,000 and $300,000. Quantity of purchases are actually up year-over-year, but the units that are being purchased are significantly cheaper.
One and two bedroom condos downtown that aim to attract young people looking for an urban life style, at an under $300K price point, would sell I think. The problem right now is that the market is flooded with $500,000 downtown properties or $350,000 condos in Airport Heights and Topsail Road. Neither of these meet the actual demand, which is first time buyers in an urban environment.
That said, the immediate opposition to this design is a bummer and will probably hold up the development. Based on the size and the remaining work they have to do with the City just to get this approved I don't expect that units could conceivably begin being closed until 2018/2019. So hard to say where demand will be then.
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