Originally Posted by new age
As much as the talk of looking for a new site sounds good, the pre sales numbers are not good at all. The fact they even started construction with less then 20% sales is not in the norm.
They intentionally started construction with 0%
sales. They are doing this with a faith in the market. They don't require future unit owners' money to finance the project: Tricar and their financiers are putting up their own money because they are confident that they will recoup the investment. If the financiers who are putting up the money didn't believe in the business plan, there would be no project. Not all condo projects require future owners to finance the development's own construction - only developments where no one is willing to risk their money in what they feel is an uncertain market require future owners to finance the project's construction (i.e. City Centre in Kitchener).
If they have sold 20% by volume and at least 30% by value in roughly 8 months - mostly without much publicity, and have another 18 or 20 months before owners take possession, I'd say that they are doing fine.
Besides, why the hell would they publicly announce that they were on a property hunt for future developments if this development was going badly in their view?
This is a huge vote of confidence in the downtown London market.