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Is Your Vancouver Condo Delayed?
Is Your Lower Mainland Condominium Development Stalled? Or Has
Your Developer Put Your Vancouver Condo on Hold?
Citing problems from building permits to rezoning
problems and from slow pre-sales to weather conditions, Greater
Vancouver real estate developers have had a tough stretch in convincing
pre-build condominium home purchasers that the sky is not falling
on the development that they purchased in. Right now, however,
the Lower Mainland property market has seen multiple condo projects
stall and put on hold and these delayed Vancouver condo developments
have put a further dent into the minds and fear of homebuyers.
As the number of delayed Vancouver condo projects on hold
that are stalled by the developer, many pre-sale condo homebuyers
are demanding answers to why this is happening, when construction
will start again, how they can possibly walk away and get their
deposit back in addition to when the delay or hold will be lifted
on construction. Many questions but unfortunately there haven’t
been many answers to these important issues surrounding delayed
Vancouver condominium developments and Lower Mainland real estate
projects put on hold. In most cases, poor pre-sales resulted in
tougher times for builders to seek construction financing, and
therefore the entire Vancouver condo project was delayed or put
on hold. In other cases, building permits and rezoning problems
have delayed the pre-sale grand opening or construction. Also
affecting and delaying condo Vancouver properties and putting
projects on hold is the fact that developers are waiting for the
market to pick up again in order to gain more momentum and pre-sales
before proceeding. It’s a waiting game right now and unfortunately,
here are the Vancouver condos on hold, delayed or stalled at the
moment, some indefinitely:
Delayed Vancouver Condos Developments
Delay is a subjective word and when it comes to delays in Vancouver
condo projects, there are certainly many of these developments
at the moment. A Vancouver condo delay basically is a result of
lower than expected pre-sales, lower than normal homebuyer satisfaction,
developer problems with financing or finalizing condominium residence
architecture, design and master plans in addition to delays in
trades and materials. Other condo delays in Greater Vancouver
real estate market is also caused by slow occupancy permits once
the Vancouver condos are completed and ready for move-in. A delayed
Vancouver condo project does not mean it is cancelled or does
it mean that the property developer or builder is looking to cancel
the project. The condominium delay can happen at any time in the
life cycle of the project including during Vancouver condo pre-construction,
during construction/building, design, and at completion. Vancouver
condo delays can be indefinite until the market changes and homebuyers
start purchasing pre-build properties again. However, for the
most part, the delays in Vancouver condo and real estate projects
is due to one or a known number of factors that are mitigated
and corrected in order to proceed as planned. A definitive timeline
will be re-organized in order to accommodate for a later occupancy
and move-in date. The Vancouver real estate development delays
in condo projects and townhomes have been the subject of many
news headlines during the property boom and its aftermath as most
new pre-construction developments did not meet their deadlines
caused by a backup in occupancy permits, tight labor market and
delay in getting construction materials and interior designers
for the finishing touches. Currently, there are many delayed Vancouver
condo real estate projects within the city and those are mostly
due to lender financing problems and poor pre-sales that have
not gotten to the number that is expected for continued financing
from lenders. Pre-sale condo homebuyers in Vancouver for delayed
condo projects will have their deposits secured in trust and therefore,
will remain there until the construction proceeds. With an indefinite
delay, this may cause problems as the pre-sale homebuyers may
not see their original deposits for months to years. OVERALL IMPACT:
Any delays in condo Vancouver development projects is a negative
thing from the standpoint of the homebuyer who expects and is
looking forward to moving into their new home during a specific
time period. Any Vancouver condo project that is delayed also
has negative consequences on the Builder/Developer who must correct
the problems and focus on completing the project. In many cases,
a delay in a real estate project will cost the developer more
money and time, and thus eating into their return on investment.
As well, pre-sale condo homebuyers have their deposits locked
in trust until something budges, either an announcement of cancellation
or construction progress to completion at a later date.
Vancouver Condo Projects on Hold
When a real estate development is put on hold, all sorts of red
flags come up to the general public and prospective homebuyers
as there is too much speculation happening in the headline news
stories. As a project is placed on hold for many reasons, the
developer has a choice of releasing the information the it sees
fit to make sure that pre-sale condo buyers do not freak out about
the news. In many cases, a Vancouver condo is put on hold because
of poor pre-sales, meaning that the builder/marketer was unable
to secure enough sales prior to construction to proceed with the
project. Other factors that force a project to be placed on hold
include problems with seeking construction financing. Without
lender financing, most Vancouver developers do not have the liquid
cash to start and complete a full scale real estate development
(nor would they do that even if they had the cash). Another factor
can be delayed building permits. In many cases in the Vancouver
condo real estate market, condo marketers start advertising and
selling pre-sale condominiums even before the last building permits
are obtained from city council. With this in mind, and if there
are any problems with there permits, a Vancouver condo project
can be put on hold until these are sorted out. Other cases have
seen Vancouver real estate condo developments on hold because
of the market for pre-build condos is very slow. In these cases
the hold on the condominium projects can be indefinite, much like
in an indefinite delay in the development. OVERALL IMPACT: Again,
this creates mass panic and red flags when a developer decides
to put a Vancouver condo project on hold. Much like a delay, or
even worse, a hold on a real estate development basically means
that nothing is really happening until the problem(s) is/are resolved.
Whether they are building permits, sales activity and numbers
or construction financing, a Vancouver condo project on hold basically
means that the development is in limbo and can go either the cancellation
route or be delayed indefinitely with pre-sale homebuyers deposits
locked into their contracts for a long time.
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Maynards Block False Creek
Flats on Hold
> February 2009 |
Neighbourhood:
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False Creek Vancouver Real Estate on Hold |
| Reason for Delay in Maynards Block
Condos: |
Fewer pre-sale homebuyers and financing have forced
developer to place Maynards Block on hold |
| Developer: |
Aquilini Investment Group |
| Advertising & Marketing: |
Rennie Marketing Systems |
| Number of Maynards Block False Creek Condos: |
13 and 9 storey concrete condo buildings on hold or
delayed |
| Pre-Sale Price Range: |
From $449,000 |
| False Creek Condo Marketing Website: |
www.maynardsblock.com |
| Important Links: |
|
| The Aquilini Investment Development Group
unfortunately cannot confirm the delay or cancellation
of the False Creek Maynards Block condominium development.
Set in a historic Vancouver building called the Maynards
Block, this property is currently on hold and the pre-sale
condo grand opening has been officially delayed. According
to Aquilini himself, the delay in the Maynards Block
Vancouver False Creek condo project on hold is due to
the drop in pre-sale condo sales in the past 6 month
in addition to financing issues for those projects that
do not get a certain percentage of presale contracts
signed before construction begin. The delay in the False
Creek Maynards Block Flats and Vancouver condos delay
is not due to the trades and material cost. With two
mid-rise condo buildings planned and proposed with building
permits ready to go, the delayed Maynards Block condos
in Vancouver False Creek condo project on hold is not
officially cancelled, but Aquilini Investment Group
mentioned in a Financial Post article that if the market
does not pick up soon, they may turn their attention
to converting this delayed False Creek condo project
at Maynards Block in to a rental condo building. The
hold-up of the Maynards Block Flats really has to do
with the timing of its launch, and the offering, both
in terms of pricing and location are superb. The up-and-coming
waterfront False Creek community is home to many other
pre-construction condo development that are currently
under building, so the delay and hold-up in the Maynards
Block Vancouver Flats are due to this competition for
homebuyers. |
| FINAL THOUGHTS: It would
be a shame if the Aquilini Investment Group decided
to convert the delayed False Creek Maynards Block Flats
into a rental Vancouver condo building which they are
contemplating if the pre-sale condo market continues
to tank. A truly historic building is attractive both
inside and out and would become affordable yet luxurious
apartment homes in a great community of the future. |
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Downtown Vancouver Richards
Condos on Hold
> February 2009 |
| Updates: |
June 2009 - Pre-sales events are continuing to sell
off remaining inventory for the downtown Vancouver Richards
condominiums which have restarted construction. |
Neighbourhood:
|
Richards on Richards Yaletown Real Estate in Downtown
Vancouver |
| Reason for Yaletown Richards Condo
Delay: |
Fewer pre-sale homebuyers and financing have forced
developer to place Yaletown Richards condos on hold |
| Developer: |
Aquilini Investment Group |
| Advertising & Marketing: |
Rennie Marketing Systems |
| Number of Richards Condos for Sale: |
Unknown |
| Pre-Sale Richards Yaletown Condo Pricing: |
From $399,900 |
| Richards Yaletown Marketing Website: |
www.richardsliving.com |
| Important Links: |
|
| The down times in the Vancouver real estate
property market have certainly affected the Aquilini
Investment Group Developments, one of which is the Richards
on Richards Yaletown Condos in downtown Vancouver that
are officially delayed. Right now, because the pre-sale
condo market is in the downward spiral with tones of
new Yaletown condominium inventory still under construction
and completing in the next two years, the Aquilini Investment
Group has stalled and delayed the Vancouver Richards
Condos that are on hold at the moment. The townhouses
and condominiums at Richards Living real estate development
is the last prime Yaletown development opportunity with
prices of $800 per square foot the norm even a year
ago for pre-build projects. A pre-sales condo push on
the Richards Vancouver condos in the fall of 2008 went
no where, and only a handful of the 226 available pre-sale
Yaletown Richards condos and townhomes were sold. This
was not enough for the Aquilini Investment Group to
proceed with the construction of Richards Vancouver
condos, and therefore, it has been delayed until further
notice. The on hold Vancouver Richards condos and townhomes
opened pre-sales on October 27th and nothing has moved
ever since. Close to receiving all building permits,
the Yaletown Richards condos may never be constructed
as nobody at the moment is purchasing new pre-sale homes.
As of right now, the delayed Aquilini Richards Yaletown
condos may resum pre-sales spring 2009, but according
to David Negrin, if people do not purchase any homes,
Aquilini development may convert the Richards Yaletown
project into a rental condo building. The on hold and
delayed Richards Yaletown living condominiums and townhomes
may become the first downtown Vancouver rental building
to be built in over a decade, but materials and labour
costs are still too high even though they have fallen
by about 30% in the past year. Until then, there Yaletown
Richards condos are on hold indefinitely and are therefore
delayed too. |
| FINAL THOUGHTS: The
Richards Yaletown condos on hold will probably be converted
into a downtown Vancouver rental condominium building,
the first of its kind from a major developer in over
10 years. For pre-sale Vancouver Richards delayed condos
on hold who purchased pre-builds, your deposits are
stuck until Aquilini Investment Group decides on the
future of the Richards on Richards Yaletown site. |
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Downtown Vancouver Jameson
House Condos Officially Put on Hold
> November 2008 |
| Update: |
June 2009 - Jameson House may be revived through financing
by the Bosa Properties developers |
Neighbourhood:
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838 West Hastings, Downtown Vancouver Real Estate
Market |
| Reason for Delay in Jameson House
Condos: |
Major lender backed out due to economic crisis |
| Developer: |
Foster and Partners |
| Architect: |
Foster and Partners |
| Advertising & Marketing: |
Rennie Marketing Systems |
| Number of Jameson House Condos: |
144 Luxury Vancouver Downtown Condos for Sale |
| Pre-Sale Price Range: |
$500,000 to $5.3 million (with organic suites starting
substantially higher) |
| Jameson House Condo Marketing Website: |
www.jamesonfoster.com |
| Important Links: |
|
| Another unfortunate victim of the financial
crisis that developers are facing is the troubled Downtown
Vancouver Jameson House condos by Foster and Partners.
The Vancouver Jameson House condominiums are officially
on hold and delayed, but there is no word from Foster
and Partners that the luxury condos at the Jameson House
have been cancelled. No cancellation notice has been
given to pre-sale homebuyers. The downtown Vancouver
Jameson House condos were approximately 73% sold out
even with highly priced organic suites, but with the
shortfall in financial lending as the prime lender for
the Jameson House backed out during construction, the
delay has been long and annoying. As one of the iconic
landmark Vancouver condo buildings in terms of design
and architecture, the pre-sale Jameson House Vancouver
condos on hold have now been delayed with no new news
coming forth from the developer or the marketer at Rennie
Marketing Systems. A striking glass design and an impressive
new organic floorplan design, the Vancouver Jameson
House delayed and condos on hold will be missed. |
| FINAL THOUGHTS: The
Foster and Partners Jameson House Vancouver condos on
hold have been delayed now for about six months with
no progression in financing or updates and with each
month of inactivity, there is much speculation that
the Vancouver Jameson House condo development has been
cancelled. We hope not. |
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Onni V6A Condos a No-Go
– V6A on Hold Indefinitely
> October 2008 |
Neighbourhood:
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Union Street between Main Street and Gore Avenue,
Strathcona Vancouver Real Estate Market |
| Reason for Delay in Strathcona
V6A Condos: |
Few pre-sales, lack of financing and economy; V6A
postponed until Vancouver real estate market changes |
| Developer: |
Onni Group of Companies |
| Advertising/Marketing: |
Onni Group of Companies |
| Number of Onni V6A Srathcona Condos for Sale: |
128 Affordable Strathcona condos (1 to 3 bed) |
| Pre-Sale V6A Srathcona Condo Pricing: |
From low $300k range |
| Onni V6A Condo Marketing Website: |
www.onni.com |
| Important Links: |
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| The Onni V6A Strathcona condominium development
was unexpectedly put on hold indefinitely in October
2008 amidst rumours that the project had already been
delayed from the developers and sales marketing team
point of view. However, pre-sale homebuyers were not
notified and continued and Onni continued opening their
sales office and signing contracts. Under investigation,
the V6A Strathcona condos were put on hold indefinitely
after allegations of wrong doing, but no legal action
has ever been pursued. Of the 128 historic Vancouver
condo building suites available, only about thirty per
cent of the pre-sale V6A condos in Strathcona Vancouver
real estate market were pre-sold, and that was not enough
to push the V6A Onni condos forward into the construction
phase. As of June 2008, groundwork and digging had already
begun at the V6A condo site, but the project at V6A
by Onni was put on hold indefinitely until real estate
market conditions improve. Because of its location in
the up and coming Strathcona community which is still
quite sketchy, homebuyers were turned off by not only
the close proximity to the downtown Eastside run down
buildings, but also because of the steep pre-construction
condo pricing at the now on hold V6A condos by Onni
Group of Companies. In any event, the Onni project is
now officially on hold at V6A Strathcona until further
notice from the developer. |
| FINAL THOUGHTS: The
nine-storey high-rise Strathcona Onni V6A condo development
is now on hold indefinitely with the possibility that
the project will be cancelled if the market conditions
do not improve this year. Pre-sale homebuyers at the
on hold V6A condos have their deposits locked up in
yet another delayed Vancouver downtown real estate project
and they can’t do anything about it. |
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The Pinnacle Residences
at the Pier North Vancouver Condos on Hold
> December 2008 |
Neighbourhood:
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Esplanade Lower Lonsdale North Vancouver Waterfront
Real Estate Development |
| Reason for Delay of North Vancouver
Pier Pinnacle Residences: |
Waiting for subdivision approval for the extensive
Lower Lonsdale site |
| Developer: |
Pinnacle International |
| Advertising & Marketing: |
Pinnacle International |
| Number of Lower Lonsdale Pier North Van Condos
for Sale: |
Series of High-Rise Waterfront Towers along the waterfront
of Lower Lonsdale yet to be completed |
| Pre-Sale Lower Lonsdale North Van Pier Condo
Pricing: |
From $469,900 to $2.3M and Penthouse suites between
$1.6 to $2.6M |
| Condo Marketing Website: |
www.thepier.info |
| Important Links: |
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The Lower Lonsdale North Vancouver
Pier Delayed Condos at Atrium West and East Tower Residences
> December 2008 |
Neighbourhood:
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Esplanade Lower Lonsdale North Vancouver Waterfront
Real Estate Development |
| Reason for Delay of the Pier Atrium West and
East Towers: |
Waiting for Pinnacle Residences at The Pier to sell-out
first before proceeding with the Atrium mid-rise towers |
| Developer: |
Pinnacle International |
| Advertising & Marketing: |
Pinnacle International |
| Lower Lonsdale Pier North Van Condos for
Sale: |
Twin mid-rise condo towers |
| Lower Lonsdale North Van Atrium Pier Condo
Pricing: |
From $469,900 to $2.2 M |
| Condo Marketing Website: |
www.thepier.info |
| Important Links: |
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| As with the luxury waterfront Pinnacles
Residences at the Pier in North Vancouver’s Lower
Lonsdale community, the Pinnacle International developers
have delayed the pre-sales for this development citing
some issues surrounding the subdivision of the site.
According to the City of North Vancouver, Pinnacle International
has met every regulation to continue working on the
Pinnacle Residences at the Pier lower Lonsdale but have
chosen not to, starting speculation that the developer
is in trouble with financing. The stalled Pier Development
is citing the problems with the subdivision of the waterfront
site that will include a luxury five star hotel, Maritime
Museum, shops, retail and office space. In typical fashion
as well, Pinnacle International has completely overbuilt
a neighbourhood of Lower Lonsdale North Vancouver that
was not ready for such an influx of new residents, overbuilding
the area and causing sales volumes to go down and housing
values to plummet. The Pier Lower Lonsdale is a great
development site, but the quality and finishes of Pinnacle
International are not up to par with other waterfront
Vancouver real estate sites, and hence the slow sales. |
| FINAL THOUGHTS: The
Lower Lonsdale Pier North Vancouver real estate development
is certainly one of those landmark property projects
that will complete. However much delayed or put on hold,
both the Pinnacle Residences at the Pier and the Atrium
West and East Pier Lower Lonsdale condo towers will
be complete within the next few years and offer luxurious
waterfront condo living to hundreds of new residents
to the North Shore, a welcome addition to a market that
is already tight in housing. |
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Downtown Vancouver Cosmo
Condos by Concord on Hold
> October 2008 |
| Update: |
June 2009 - The Concord Pacific Cosmo Condos on Georgia
Street are opening pre-sale viewings at their False
Creek presentation centre |
Neighbourhood:
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West Georgia, Downtown Vancouver Real Estate Market |
| Reason for Delay of Cosmo Condos: |
Collapsing pre-sale condo market |
| Developer: |
Concord Pacific |
| Advertising/Marketing: |
Concord Pacific |
| Number of Georgia Cosmo Vancouver Condos: |
Several Hundred High-End Downtown Vancouver Condos
on Hold |
| Pre-Sale Condo Pricing: |
Not Released |
| Cosmo Condo Marketing Web Site: |
www.concordpacific.com/gbeatty |
| Important Links: |
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| If you think that the addition of the
West Georgia Cosmo Condominiums by Concord Pacific will
be a welcome addition to the thoroughfare anytime soon,
think again. Concord Pacific has placed the already
delayed Cosmo Vancouver downtown condo project officially
on hold, citing slowing pre-sale condo homebuyers and
a flattening market. It is now officially stalled and
some real estate speculators think that Concord Pacific
will just cancel this high-rise downtown tower residence
if the market doesn’t pick up in 2009. It’s
an unprecedented market said their CEO and with no condos
being sold over the past 6 months, the inventory is
too high for the Cosmo Concord Pacific delayed project
to proceed. A pre-sale marketing launch for the West
Georgia Vancouver Cosmo Condos failed miserably, with
very few registrations and expressions of interest.
Right now, the delayed Cosmo Vancouver condos developer,
Concord Pacific, will wait it out for another few months
to see what the market is doing. |
| FINAL THOUGHTS: Another
high-end condo tower in the heart of downtown Vancouver
will not make it into construction or pre-sales anytime
soon. The recent glut in new luxury condo properties
in Vancouver have flooded the re-sale and assignment
condominium markets, making it an easy decision for
Concord Pacific to delay the Cosmo Vancouver condos
and place it on hold indefinitely. |
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West Vancouver Evelyn Condos
Put on Hold, Evelyn West Van Delayed
> October 2008 |
Neighbourhood:
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Park Royal West Vancouver Real Estate Market |
| Reason for West Vancouver Evelyn
Condos on Hold: |
'Slope Foundation’ and Lien on Millennium Evelyn
Developments by Contractors |
| Developer: |
Millennium Developments |
| Architect: |
Arthur Erickson |
| Advertising/Marketing: |
Rennie Marketing Systems GREEN and Soprovich Marketing
Group |
| Number of Units: |
349 Evelyn West Van Condos On Hold |
| Pre-Sale Condo Pricing: |
Affordable West Vancouver condos and townhomes –
no price range released |
| Evelyn West Van Condo Marketing Website: |
www.evelynwestvancouver.com
www.evelynparkroyal.com |
| Important Links: |
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| The Millennium Development Group is in
hot water right now with the fiasco taking place at
the 2010 Olympic Village in southeast False Creek, so
you can’t blame this developer for the hold on
the West Vancouver Evelyn Condos project which was officially
delayed October 2008 citing problems with the slope
foundation and pouring the foundation in the wet/cold
weather. Usually, this is not a problem, but that was
the official word on the delayed West Vancouver Evelyn
Condominium that had not started pre-sales. However,
pre-sale condo marketing and advertising had started
and Rennie Marketing Systems had announced that there
were thousands of registrations for this new West Vancouver
Park Royal real estate development. The Evelyn West
Vancouver condos are in a great location close to Park
Royal, but next to the highway, which brings about lots
of noise and people. As of right now, the Millennium
Development Evelyn West Vancouver condo project is delayed
and put on hold temporarily. The developer and Rennie
Marketing said last year that sales may start later
in the spring of 2009, but as of this point, that timeline
too, may be delayed for the new Evelyn West Van Drive
condos. |
| FINAL THOUGHTS: A ground
breaking West Vancouver real estate development at the
delayed Evelyn Drive condominiums by Arthur Erickson
and Millennium Developments would have relieved some
of the pressure from the lack of affordable and new
housing on the North Shore. However, with reassurances
that the West Vancouver Evelyn Condo pre-sales will
start in 2009, a delay in this North Shore development
may be a good thing as the real estate market settles
down. |
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Surrey Sky Towers Condos
Put on Hold
> September 2008 |
Neighbourhood:
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Downtown Whalley, Surrey Central Real Estate Market |
| Reason for SkyTower Surrey Condo
Project Hold: |
Foreign Developer Seeking New Financing |
| Developer: |
Jung Developments Inc. seeking bankruptcy protection |
| Advertising/Marketing: |
MAC Marketing Solutions |
| Number of Units: |
901 Total Units (1 SkyTower Condo High-Rise Complete,
2 Sky Tower Surrey condominium towers on hold) |
| Pre-Sale Condo Pricing: |
Surrey SkyTower Condos from $199,700 to over $400,000
and Sky Tower Townhomes from $395,000 |
| SkyTower Surrey Condo Marketing Website: |
www.skycentralcity.com |
| Important Links: |
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| The foreign developer, Jung Developments
Inc, produced a bomb of an announcement when they said
that the almost sold out high-rise tower residences
at the Surrey Sky Towers in Surrey Central were being
put on hold in September 2008. This is the largest real
estate project in Surrey’s history. The developer,
Jung Development, filed for protection from creidtors
and sought major refinancing. The first tower was finished
and occupied, but the two towers are under construction
and on hold at Infinity at SkyTowers. The final two
cancelled Surrey Sky Towers were in zoning approval
but not on the market. MAC Marketing Systems handled
the sales and mentioned that the on hold Infinity at
SkyTowers requires about $100 million to complete. With
the Infinity SkyTowers condo already complete and with
the two upcoming large scale highrises just starting
groundwork, Jung Developments decided to pull the plug
on the remaining two Sky Towers Surrey and put the project
on hold. Placing the SkyTowers Surrey condominiums on
hold affected hundreds of pre-sale homebuyers as the
total master planned community was going to develop
over 900 new condo homes in the downtown Whalley, Surrey
Central real estate market. Affordable pricing and an
up and coming location, the delayed Surrey Sky Towers
have not updated their stance on this delayed construction
yet. |
| FINAL THOUGHTS: Pre-sale
homebuyers have their money stuck in an investment that
is neither appreciating in value or even under construction
which is frustrating for anyone who owns a Surrey Sky
Tower condo unit that is delayed. Bad developer, bad
location and bad result. |
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Surrey Infinity at Central
Surrey Condo Towers Delayed
> August 2008 |
Neighbourhood:
|
Surrey Central Real Estate Market |
| Reason for Infinity Surrey Condo
Project Hold: |
Foreign Developer Seeking New Financing |
| Developer: |
Jung Developments Inc. seeking bankruptcy protection |
| Advertising/Marketing: |
MAC Marketing Solutions |
| Number of Units: |
560 Total Suites |
| Pre-Sale Condo Pricing: |
Surrey Infinity Condos from $199,700 to over $400,000
and Infinity Surrey Townhomes from $395,000 |
| Infinity Surrey Condo Marketing Website: |
www.skycentralcity.com |
| Important Links: |
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| The largest Greater Vancouver residential
development is on hold at the Surrey Infinity condos
by Jung Developments which has filed for bankruptcy
protection. Citing problems with increased trades and
material costs, the pre-sold out condominium tower residences
at the Infinity Surrey condominiums were put on hold
in August 2008 when it’s lending partner, the
Lehman Bros of the United States went other. With no
backup financing and no other lender wanting to take
over, the Jung Developments Surrey Infinity condos were
placed on hold and delayed indefinitely even to this
day. The developer is not bankrupt, however, times are
looking quite gloomy as there have been no updates from
Jung Developments or the marketer for the Surrey condos
on hold at Infinity Towers. At 36 and 40 storeys, the
two condo towers at Surrey Skytowers on hold development
were to be the tallest condos in Western Canada outside
of Calgary and Vancouver. Booming sales lead to a sell
out on opening day here at the delayed SkyTowers Surrey
on ohld condos. By October 2008, Jung Developments failed
to secure financing and building permits required to
complete meaning that 880 pre-sale condo buyers at the
delayed SkyTowers Surrey Central had the option of pulling
out. More than 560 pre-sale homebuyers have their deposits
in limbo at the moment as construction is stalled and
the Surrey real estate project continues to be on hold
with no end in site. Locked in to their purchase price
and with no way of getting their deposits back, we expect
many people to default and walk away from their pre-construction
contract purchases. |
| FINAL THOUGHTS: Jung
Developments is in trouble and the Surrey condos on
hold at Infinity Towers represents another reason to
do your due diligence on developers and builder history
as well as to weigh the difference between a pre-build
or a completed residence. |
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Abbotsford Brio Condos on
Hold/Delayed – Construction Halted
> March 2008 |
Neighbourhood:
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Abbotsford Real Estate Market, Fraser Valley |
| Reason for Project Hold: |
Not enough pre-sales |
| Developer: |
Matsqui Land Corp |
| Number of Brio Abbotsford Condos: |
174 Total Suites |
| Pre-Sale Condo Pricing: |
Steep at up to $1.1 M, well above market price |
| Brio Condo Marketing Website: |
www.brioliving.ca |
| Important Links: |
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| Located at Marshall Road and McCallum
Road in Abbotsford real estate market, the Brio Condos
by Matsqui Land Corp featured 174 pre-sale units. However,
the developer didn’t get enough pre-sales as the
Brio Abbotsford condos on hold were selling at too steep
the pricing when compared against other developments
in the area. Construction crews abandoned the 28 storey
Abbotsford Brio project on hold/delayed in March 2008
which was advertised as the tallest residential condominium
tower between Surrey and Calgary. The failure to find
luxury home purchasers for units up to and over $1 M
was part of the major problem fro Matsqui Land Corp
who didn’t have enough construction financing
to proceed with the delayed Brio Abbotsford condos on
hold. Special incentives with luxury cars and valet
parking didn’t enhance sales here at the delayed
Brio Condos and when the average price of a condo is
$180,000 in Abbotsford, and the developer was asking
for 10x as much in some cases, homebuyers for pre-sale
condos stayed away. Only 20 of the 174 units at the
on hold Brio Abbotsford condos were pre-sold. |
| FINAL THOUGHTS: All
of the presale Brio Abbotsford condo purchasers received
their deposits back with interest. The condo residential
tower at Abbotsford Brio was to be completed by April
2009. There is no word from the developer as to if and
when the Brio project may start again. |
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Out of Town
BC Real Estate Projects Delayed or On Hold |
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Quigg Capella at Bear Mountain
on Hold/Delayed
> October 2008 |
| Hot on the heals of many other cancellations
and delays in resort BC real estate developments, the
Quigg Group announced that the Capella Homes at Bear
Mountain near Victoria would also be placed on hold.
As you may know, there was much controversy about the
environmental impact of the development here at Victoria
Bear Mountain and the Capella condo homes were to be
the first condominium luxury residences of this master
planned neighbourhood by the Quigg Group. The massive
upscale real estate development at Bear Mountain Victoria
Langford by Robert Quigg is now officially on hold,
as their press release stated on October 16, 2008. Work
on the $1.4 billion master planned Capella condominium
development was stalled and now officially on hold for
the four boutique condo tower, vineyard, winery and
spa. Since mid-August, the Quigg Group cited slowing
sales and a tightening credit market and with homebuyer
fear creeping into the marketplace, the Quigg Group
decided to put the Bear Mountain Capella Condos on hold
indefinitely until the market changes. Robert Quigg
still thinks that the fundamentals of Victoria Bear
Mountain development are solid, but when consumers have
fear in their eyes, it exponentially gets worse before
it gets better. Therefore, the delay in the Capalle
condos at Bear Mountain are now on hold until market
conditions change. This follows on the heals of another
Langford development put on hold at the 6000 unit Westhills
Victoria property development. (Marketing Website -
www.quiggcapella.com/capella) |
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Kelowna Lucaya Condos on
Hold/Delayed
> October 2008 |
| Another Kelowna condo project has officially
been placed on hold after the developers of a luxury
boutique condominium high-rise building have seen their
construction financing fall through. Two Calgary real
estate developers have placed the Lucaya Kelowna condos
on hold for the moment. This thirty million dollar project
is another victim of the credit crunch that everyone
is feeling in all markets today and when bank financing
stopped in September 2008, Navigator Development Corp
and Platinum Equities, both based in Calgary, had to
stop construction and place the Kelowna Lucaya condos
on hold and have delayed the 21 storey condo project
indefinitely. Almost $17M had already been spend on
foundation, permits, parkade and engineering and only
33% of the total pre-sale suites available at the Lucaya
Kelowna condos on hold were pre-sold. With the lending
drying up and with homebuyers not looking at purchasing,
both developers are seeking a partnership to continue
to project. As of right now, the Kelowna real estate
development is delayed and the un hold Lucaya condo
pre-sale buyers will not get their deposits back until
a resolution is made. All of the deposit money is in
trust, so homebuyers do not have to worry about their
money, except that it is locked in. The Kelowna project
on hold at Lucaya condos was to have 86 condo suites
for sale. (Marketing Website - www.lucayakelowna.com)
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Ranchland Estates Homesites
and Homes in the Nicola Valley on Hold
> February 2009 |
| Citing problems with sales due to the
economic turmoil, the family owned Nicola Valley Ranchland
Estate Home development is put on hold for 2009. No
homesites, lots or homes in the Nicola Valley Ranchland
Estates will be sold, however they are offering a one
time investment opportunity to keep the project going.
At a substantial discount, you can purchase a future
home site at a fraction of the cost right now even though
the project itself is delayed and on hold. There are
only 4 of such deals right now. The on hold Ranchland
Estates HOmesites in the Nicola Valley is actually ready
to go and the developer/builder is fully committed to
seeing this project development go through once the
market returns. These unbelievable homesites and lots
for sale in the Nicola Valley overlook some of the most
stunning and panoramic views that one could imagine
in the province of BC. In addition, with a small developer
and builder, you could customize your new home at the
Ranchland Estates at Nicola Valley to the tiniest detail,
making this an outstanding opportunity for retirees
and families looking to live outside the city. (Marketing
Website - www.ranchlandlots.com) |
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24 Kelowna Condos on Hold
by Aquilini Investments
> February 2009 |
| The pre-construction Kelowna 24 condos
have been now approved for building and the presentation
centre and sales model suites will open shortly this
year. The Aquilini Development Group has postponed the
launch of several Greater Vancouver condo projects,
and the new Kelowna 24 condominium development falls
into the delayed/holding pattern project. As of February
2009, Aquilini himself was quoted as saying in the Financial
Post, that the Kelowna 24 Condos pre-sale condominium
project is on hold because of the economic turmoil,
credit financing and fewer pre-sale home buyers willing
to put down deposits on condo homes that won’t
be completed for a couple of years. The Aquilini 24
Kelowna condos on hold are now delayed indefinitely
until the market changes. Unlike the Vancouver condo
properties which maybe cancelled and converted into
rental properties, the presale 24 Kelowna condominiums
on hold have not mentioned any such change in use. |
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Other Resources
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