The majority of buyers of small condos are not looking at living space; they are looking at the price. They are ready to make a concession on space to live in a trendy neighborhood.
The curve of urbanization of major cities in the world is the same everywhere. Buyers do not realize that it is a known fact around the world, that at an equivalent budget the more a city is developed, the more the number of large spaces decreases. It’s all about supply vs. demand. Promoters cannot overdo it, people will turn to resale: it is a question of balance.
However, as long as properties, material and labor remain at these levels, prices will continue to maintain. We cannot fall below the cost of construction and make no profit, if not no promoter will voluntarily want to build a project.
In the United States, promoters were operating below cost rates but the market is quickly stabilizing in the big cities. (2 of 5)
Patrice Groleau owner McGill Real Estate Agency specializing in sales and marketing projects
Holder of a BA degree in Human Resource Management from the University of Quebec in Montreal, a graduate degree in Entrepreneurship from the University of Sherbrooke, Advanced Project Management at McGill University in Montreal. He also holds a degree in Risk Management from the University of Quebec in Montreal, a trade securities licence in Canada by the Canadian Securities Institute, in addition to having obtained diplomas from the Quebec Real Estate College and Real Estate Broker College in Quebec.