983 replies to this topic

[Mike K.]

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.

[Kapten Kapsell]

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. 

[Mike K.]

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%.

[VicHockeyFan]

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.

[Mike K.]

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.

[MarkoJ]

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.

[Mike K.]

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

 

[MarkoJ]

Photos from Sept 29th

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[Mike K.]

989 is at the 50% sold-out mark. - http://victoria.citi...-estate-market/

[MarkoJ]

Photos from Nov 10th

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[MarkoJ]

Photos from Dec 15th

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[Glen]

Very nice images taken!  Like they say, a picture speaks a thousand words.  Tx's for sharing

[Mike K.]

Full size photos: https://victoria.cit...johnson-street/

 

[Nparker]

I really like this project but I sure wish that in order to maximize density developers weren't restricted by arbitrary height limits. Would this project not have looked better if the eastern tower were 20 floors and the western only 12 (or vice-versa)? I think this arrangement would have also balanced better with the Legato and the Manhattan. Instead, each of these four towers will be very nearly the same height.

[Glen]

I would agree, it would be far more interesting and pleasing to the eye.

[ovovov]

Checked out BC Assessment site,  compared both Era and Janion suite, their values have been up for about 50% in  2 years....

In 2020, we will see how much 989 would be increased......

[Nparker]

I noticed yesterday that the SE corner of the site is now being excavated. Does anyone know if this will be dug down as deep as the rest of the lot and if so, why it was left until this stage?

[sdwright.vic]

That will only be dug out for a concrete slab foundation.

[Nparker]

That will only be dug out for a concrete slab foundation.

That's sort of what I figured. I guess they wanted to delay moving the site office as long as possible.

[VicHockeyFan]

 

The other day an excavator was busy bashing down this wall from sort of above.  The steel beams were still up, but the wall was being pummelled down.

Edited by VicHockeyFan, 12 January 2018 - 02:57 PM.