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Thoughts.... anyone on CP get in on this action?
CALGARY - Three years ago during the peak of the housing market Calgarians lined up to purchase condominiums at projects that had not even dug a hole in the ground yet.
This past weekend it was a case of deja vu as condo mania swept through the sales centre at the University City project planned for the Brentwood LRT Station.
In a matter of days, Phase 1 of the project, a 216-unit, 18-storey residential tower, has completely sold out. As of Tuesday mid afternoon, only 48 units were available in Phase 2, another 216-residence, 18-storey tower.
"It was madness. It was really busy, really busy," said Jennifer Carter, sales manager for the project, of the weekend activity. "I wasn't expecting it to be that busy. I didn't expect us to sell out either the first day."
She said buyers included students, parents purchasing for their children, people who work at the University of Calgary and Foothills Hospital, and some investors.
Cory Fisk was one of those buyers on Sunday and said he was shocked at how quickly units were being scooped up. He purchased a two-bedroom unit in Phase 2.
"It's a couple of years from now which I'm quite happy with. The main reason I looked at it was my son will be graduating high school in a couple of years and the location is perfect for a university kid," he said.
"And the price of course was phenomenal. You've got everything you need. The shopping's right there. The LRT is right there. The university is right there. And if he decides to go somewhere else to school I've got a place I can rent."
The University City project, a master-planned new community located across from the University of Calgary at the Brentwood LRT Station, will eventually consist of five buildings with a total of 600 to 700 residences.
The first building will be ready for occupancy about late December 2012.
Phase 1 and Phase 2 of the project will be 18-storey towers followed by 12 and 14-storey towers in Phase 3 and Phase 4, and four storeys in Phase 5.
Studio units are priced from $159,900; one bedroom units from $175,900; and two bedroom units from $189,900.
The project is being developed by Metropia, Knightsbridge Homes Ltd., and RioCan.
Ironically, the condo frenzy comes at the same time the resale condo market took a dive last month with weak sales. In October there was only 310 MLS transactions - the lowest level for the month since 1999, when only 308 condos sold. The average price was $287,793, down slightly from October 2009's $289,155 average on 601 sales.
But the selling activity of the last few days at University City calls to mind similar scenarios played out in the city a few years ago.
In June 2007, 40 luxury condos sold in one day at the Le Germain Calgary mixed-used development in the heart of the downtown just across the street from the Calgary Tower. Prices ranged from $840,000 to $3.5 million.
A few months later in September, the Waterfront condo project in Eau Claire had its first phase of development virtually sell out one weekend. The project, situated near the Bow River along Riverfront Avenue just east of the Eau Claire Market, saw strong interest for its 170-plus residential unit tower. Prices ranged at that time from the mid to high $300,000 to $1 million.
University City is considered a Transit Oriented Development with the City of Calgary.
Kevin Barton, a senior planner with land use, planning and policy for the city, said the idea is to concentrate housing and jobs as close as possible to an LRT station.
The intensity in terms of the amount of housing and jobs will vary from station to station.
"Brentwood probably for northwest Calgary would probably have the most density for jobs and housing," said Barton. "On the south line, Chinook and Anderson would probably be our highest density TOD sites on the south leg.
"The TOD areas are like mini downtowns that will be strung along the LRT lines."
Although condo sales have been moderating in Calgary, some projects will sell quicker than others, said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp.
"Projects that are competitively priced, close to the LRT or major bus routes, and close to amenities will attract prospective buyers," he said. "In addition, units that are close to any major institutions or downtown will typically attract investors looking to rent the units out."
As of September, there were 976 condo apartment starts so far this year in Calgary compared with 184 for the same period a year ago.
The number of complete and unoccupied units in September was 707, up from 342 units in September 2009, said Cho.
mtoneguzzi@calgaryherald.com
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