|
|
|
- Thread starter Daveography
- Start date
Oilers99
Active Member
Tell that to all the people that own in fox, ultima, encore, etc.
David A
Senior Member
Yes this is a bit bizarre and hard to fathom, but I feel part of the reason for this was because the influx here happened as the condo boom in Canada was ending.
Oilers99
Active Member
There's always a justification from people on this. Fact remains this is a very bad sign on Edmonton infill.
David A
Senior Member
As I understand it, the rapid rise in interest rates seemed to put an end to a desire for condos more so than single family homes, which to me seems very odd as condos especially here, are much more affordable.
However, there does seem to continue to be some rental housing construction downtown in Edmonton as well as elsewhere. I'm not trying to justify the situation, just try make some sense of and explain it.
We may think we have it bad, but there are thousands of unsold condos in places like Toronto, because their building boom did not stop when interest rates increased by a lot. It is not just an Edmonton problem.
However, there does seem to continue to be some rental housing construction downtown in Edmonton as well as elsewhere. I'm not trying to justify the situation, just try make some sense of and explain it.
We may think we have it bad, but there are thousands of unsold condos in places like Toronto, because their building boom did not stop when interest rates increased by a lot. It is not just an Edmonton problem.
Oilers99
Active Member
No it is an Edmonton specific problem, when you have an influx of new residents and no new projects and prices decline. Ultima, Fox, Encore were all presold prior to the influx of new people. Westrich did not do another condo tower and Langham converted Falcon from condo to rental. I'm not sure how much more data people need to see, numbers do not pencil in Edmonton the way people think they do. Furthermore, downtown rental buildings have been very sluggish on absorption and new projects are not being green lit.
cmd uw
Active Member
You know they also build condos outside of downtown...and even then there is veeeeery little of that product.
cmd uw
Active Member
How so? Aside from Vancouver and Toronto there really hasn't been that much condo product developed in other major markets compared to rental. I will agree that Edmonton seems to be an outlier in this regard and I can't figure out why considering there was a small, but steady, condo market for decades up until about 2014/15 and then it just dropped off a cliff. A lot of this can be tied to affordability and that a large portion of buyers can still afford house (whether its a single, semi or fee simple town). Pricing has to increase more to push more people to look at condo product, similar to what has happened in Calgary over the past 2 years.
David A
Senior Member
Some of it is Edmonton specific, but demand for condos now is problem elsewhere in Canada very much so too, prices have recently fallen in Toronto by up to 30%. Again, part of our problem was timing, when interest rates were low it led to a condo boom.
However, at that time unfortunately people were either leaving Edmonton or the population was growing more slowly. Lets not forget the big oil price drops in Alberta happened from around 2015 to 2021 which was around the same time interest rates were lower. So we didn't have a condo boom then and of course there is no condo boom now either. If interest rates come down more, there will probably be more demand for condos here and elsewhere.
However, at that time unfortunately people were either leaving Edmonton or the population was growing more slowly. Lets not forget the big oil price drops in Alberta happened from around 2015 to 2021 which was around the same time interest rates were lower. So we didn't have a condo boom then and of course there is no condo boom now either. If interest rates come down more, there will probably be more demand for condos here and elsewhere.
Wax
New Member
At the bottom it mentions city admin will look into possibly creating a tax for vacant commercial lots. ( I think im reading that right)
ADob
Active Member
Yes, please!
kcantor
Senior Member
Is a lot approved for surface parking a vacant lot?
If the answer is yes, this will just result in more parking lots even if the approval is for a temporary period in order to reduce the financial hardship of owning it.
Of the is no, this will either generate a nominal amount of additional revenue from those owners who don’t want to sell and can afford the added cost or they will be forced to sell at lower and lower prices in order to generate a sale and the resulting reduction in values will reduce the taxes the city currently receives.
It also needs to be more that the reduction in value would apply for all similar parcels, not just those that sold, so the net to the City will likely be a considerable deficit even with the penalties received as part of the equation.
Oilers99
Active Member
Edmonton retailers favour the suburbs, CBRE report finds
A recent CBRE report highlights changes to Edmonton's retail landscape, particularly in downtown with shake ups in building names and occupation.
edmontonjournal.com
Yeggy
Active Member
Comparing a specific property to city wide aggregate numbers like they are the same is flawed.
There are always winners and losers in the broader market, but you knos this and are only acting cute.
Yeggy
Active Member
As we post national record amounts of in fill building and population increases whilst other major cities see population decline.
You are being overly negative and are hard to take seriously.