Quote:
Originally Posted by bizaro86
You can be upscale and still offer value. If those 1 beds for 357k are 900 square feet, then that's a spacious floor plan and still good value. If they're 357k for 550 sq ft in an area with no amenities yet, I think they'll have a hard time selling them, since it's basically all hinged on the neighbourhood developing into something in the future.
But if you're already paying for all the upside, why take the risk that it doesn't happen?
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Absolutely. Although it almost worked for Victoria Park with Arriva. That was quite an expensive building (and had the units to at least partially justify it, I really liked what I saw) but people paid expecting the neighborhood to continue to develop, and it didn't, thanks to terrible luck with timing and a giant recession.
It might have worked great if they got up the rest of the development and a few others started to pour in, but I wonder if now people are nervous of this scenario (Orange Lofts is another one where people paid for the future and didn't get it).
I think affordable units just can't come fast enough for the area. It's not like vagrants are going to buy up all of your stock of $280K one bedroom condos...