taal
Senior Member
We won't likely see that here ... a lot of those projects in the states went up with minimal to non existent presales ... that's never the case here (hardly ever ...) you'll never see it in this market at the very least.
The number of unsold units seems alarming at first but I'm not sure that's really the case ...
You'd really need to see the stats for the last 5 - 10 years. I would guess even in the middle of the boom i.e. 1/2 years ago there was still a very large number of unsold units. If you have hundreds of projects ... all of which at 60-80% sold, that still leaves a lot of unsold units.
The market will correct here in a reasonable manner I suspect. We'll likely see a lot of projects that just started sales or are in pre-sales get canceled next year. A few projects that have been in sales for a while canceled ... more likely postponed.
Most important though ... very few new proposals. Or at the very least proposals that plan to go into sales immediately.
At the heart of the US crisis was several factors:
1) huge amounts (I can't begin to explain this) of sub prime morgate lending ... this carries forward to things like credit cards as well (not so apparent yet) < this we probably have quite a bit in Canada as well, most of the western world actually ... anyway that's another story.
2) construction purely based on projected future demand.
Although we've seen a bit of (2) here there's a lot less of (1).
The number of unsold units seems alarming at first but I'm not sure that's really the case ...
You'd really need to see the stats for the last 5 - 10 years. I would guess even in the middle of the boom i.e. 1/2 years ago there was still a very large number of unsold units. If you have hundreds of projects ... all of which at 60-80% sold, that still leaves a lot of unsold units.
The market will correct here in a reasonable manner I suspect. We'll likely see a lot of projects that just started sales or are in pre-sales get canceled next year. A few projects that have been in sales for a while canceled ... more likely postponed.
Most important though ... very few new proposals. Or at the very least proposals that plan to go into sales immediately.
At the heart of the US crisis was several factors:
1) huge amounts (I can't begin to explain this) of sub prime morgate lending ... this carries forward to things like credit cards as well (not so apparent yet) < this we probably have quite a bit in Canada as well, most of the western world actually ... anyway that's another story.
2) construction purely based on projected future demand.
Although we've seen a bit of (2) here there's a lot less of (1).
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