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Presale Condo Price Cut Could Start A Trend

Presale Condo Price Cut Could Start A Trend

When Anita Wan got a call from Amacon three weeks ago, she feared the worst regarding her condo purchase at The Beasley in downtown Vancouver. Instead, she was told that the price on the one bedroom condo she had bought as a pre-sale a year ago for $430,000 had been reduced to $309,000. "It is a great deal now," Wan said. Indeed. In what could trigger a trend in Metro Vancouver's presale market, Amacon announced Monday they have cut prices by an average of 22% on all 221 Beasley condos, 65% of which had been pre-sold. The Beasley is located on Seymour Street at Nelson but construction hasn't started - it is to complete in 2012. The lowest price now for a 463 sq. ft. studio is $219,900. A one bedroom and den at 648 sq. ft. is from $319,000. Presale buyers are seeing price reductions from a $100,000 - $250,000 from their initial purchase price.

Amacon reopens the site sales office March 21 at 1035 Seymour and plans to hold a sales blitz on April 4 to sell the remaining condos. According to Amacon, construction costs reductions of up to 30%, especially for concrete, steel rebar and labour have allowed the price reductions. Offering the same price cuts to presale buyers should also save Amacon from the lawsuits that have followed other price discounts recently. If you want to buy (and sub $500 per sq. ft downtown does look like a good deal) you will need a 5% deposit with your offer; an additional 5% in 90 days; and a further 10% one year later. For details, call 604-669-7343.

Another new home price cut incentive is to be launched next week.

Major Point: JREI is certain that not all developers welcome the news about price reductions and blowouts (look at more pending blowouts below). Some will have no choice but to follow. We fully expect Metro Vancouver developers to be getting calls from their pre-sale buyers this week asking about price discounts, especially if construction is at the very early stages.