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UNDER CONSTRUCTION
989 Johnson
Uses: condo, commercial
Address: 989 Johnson Street
Municipality: Victoria
Region: Downtown Victoria
Storeys: 17
Condo units: 206 (studio/bachelor, loft, 1BR, 2BR, sub-penthouse, penthouse)
Sales status: pre-sales
989 Johnson is a 206-unit, two-tower 15- and 17-storey condominium complex with a six-storey podium. Ground fl... (view full profile)
Learn more about 989 Johnson on Citified.ca      Official website: 989victoria.com
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[Downtown Victoria] 989 Johnson | Condos; commercial | 17 & 15-storeys | Under construction


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#581 Mike K.

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Posted 07 September 2017 - 11:55 AM

I "think"(?) Black and White had sold out of nearly all non-penthouse inventory when 989 hit the market (or at least they were in the final stages of their sales campaign). YoY is definitely filling that niche, too!

 

Most projects will include end-user focused inventory but you'll see that as premium one+den 1BR's and 2BR's+ which investors are far less likely to take up. The investor market is looking for studios, junior one's and 1BR's in order to make the whole gig work out financially.


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#582 Kapten Kapsell

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Posted 07 September 2017 - 12:13 PM

I "think"(?) Black and White had sold out of nearly all non-penthouse inventory when 989 hit the market (or at least they were in the final stages of their sales campaign). YoY is definitely filling that niche, too!

 

Most projects will include end-user focused inventory but you'll see that as premium one+den 1BR's and 2BR's+ which investors are far less likely to take up. The investor market is looking for studios, junior one's and 1BR's in order to make the whole gig work out financially.

 

So perhaps VHF is correct in assuming that a lot of investors may be attracted to the Jukebox building due to the number of studio and 'junior' 1 bedroom units. 

 

Interestingly enough, I understand that certain buildings from a decade ago which include a good deal of 'end user' focused inventory- such as Juliet and the Wave- are overwhelmingly rented out now.  A part of this may be due to timing:  the buildings were finished a few years before the market downtown of 2008/2009, so owners who could not sell at that time may have opted to rent their units instead. 



#583 Mike K.

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Posted 07 September 2017 - 12:58 PM

Jukebox is definitely geared towards the investment market.

 

Juliet and its ilk were still priced such that an investor could carry a mortgage, insurance, upkeep and strata fees for a one bedroom + den unit at the going rents. Despite the talk of rapidly rising rents, one-bedroom + den condos in downtown Victoria were still renting for $1,200-to-$1,500 per month five years ago.

 

Back when a one-bedroom with parking could be purchased for $300k the economics at ~$1,350/month rent for a brand new unit made sense. Today that same unit in a brand new building will be valued at $400-$450k (~40-50% higher) while rents will have risen by 15-25%.


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#584 VicHockeyFan

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Posted 07 September 2017 - 02:25 PM

Most investors have lotsa money kicking around for down payment.  They are just looking at something to put their money into.  And have a romantic idea that they might retire here too, or have a family vacation home.   So they will pay more here than say for an investment condo in Medicine Hat or Saskatoon, or even in Toronto.


Edited by VicHockeyFan, 07 September 2017 - 02:26 PM.


#585 Mike K.

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Posted 07 September 2017 - 08:24 PM

It happens to some degree for sure, but I would imagine the folks buying two or three studios to then rent them out are not buying retirement homes.

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#586 MarkoJ

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Posted 10 September 2017 - 12:35 PM

Back when a one-bedroom with parking could be purchased for $300k the economics at ~$1,350/month rent for a brand new unit made sense. Today that same unit in a brand new building will be valued at $400-$450k (~40-50% higher) while rents will have risen by 15-25%.

 

This is pretty much a bang on assessment. Funny thing is now buildings sell out of one bedrooms in a day (Yates on Yates) but back in 2011-2014 took two to three years to sell out a building. 

 

Market psychology appears to be much more important than ROI or common sense.


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#587 Mike K.

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Posted 19 September 2017 - 09:37 AM

Details: http://victoria.citi...johnson-street/

 

989-Sept-18-2017.jpg


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