It’s more important than ever to be informed when buying pre-construction.

It’s more important than ever to be informed when buying pre-construction.

By Condo Culture

The leaves are changing and the Fall season, Thanksgiving (and Oktoberfest!) are officially upon us! For those of you who have been following the market, you know that things are constantly changing out there right now. For those of you who haven’t been following the market, keep a keen eye on our updates as the market is changing as quickly as the colour of the leaves! And as they say, with change comes opportunity.

The preconstruction market across the Region and the country as a whole continues to be challenged with most projects experiencing slower sales. Fewer sales are resulting in more competition among projects actively launching within the current environment, which is increasing the discounts and incentives available to opportunistic purchasers. These purchasers, who are primarily buying on the premise of future increases in housing prices as a result of increasing immigration and constrained supply are patient, selective and attracted to projects that aren’t necessarily the cheapest but offer the strongest value proposition and growth potential. With fewer buyers across the market, a number of projects are struggling to reach the sales thresholds they need to begin construction while the strongest, most attractive projects (ie. those with the strongest value proposition) are obtaining the majority of sales and actually getting built.

Now more than ever, it has become critically important to be informed and highly selective when choosing projects to invest in and with developers you can trust to deliver. Not all projects will be successful in the current market and it’s essential when investing in a development that you are confident it will reach its construction threshold and is being managed by a developer that is experienced and has a strong financial position. Taking a methodical and thorough approach to evaluating potential projects to invest in will help you avoid a scenario where your investment is at risk or held up in a project that will not get built and ultimately does not generate a return. If you’re excited about new opportunities out there but unsure of how to evaluate a project on this basis and want to make sure you’re informed, reach out to us. This is where we can help.

The downstream effect of fewer projects reaching their construction threshold will be a reduced supply of new housing units entering the market over the coming years, which will put even more pressure on housing prices. A challenging scenario for affordability and the market overall while at the same time presenting an opportunity for those with idle capital to help deliver new housing to the market and get rewarded through increasing prices.

Need help finding the right opportunities or want to stay on the pulse of the market with new developments that we feel represent the strongest buying opportunities? DM us on social, reach out to us via our website or call us anytime to get started.

Have a great long weekend everyone!


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