Think “Condo Living” when Land is at a Premium
Are you ready for “big city” floor plans? Are you ready for “big city” floor plans in Calgary?
However, these plans are not “spacious” floor plans! The downtown condo market has a great demand for condominiums under 650 square feet with one bedroom. Many of the builders and developers of Midtown, Union Square, The Avenue and Mark on 10th are building more than half of their condos under the 650 square foot mark. And, in the majority of cases, these are the premium condominiums that are the fastest to sell!
In comparison to larger suites in new developments, the price of a smaller unit will be the first thing to attract buyers. This low price point alone will be attractive to both investors and first time buyers. But the prices for a “cozy condo” will surprise you as they are not cheap!
Depending upon the level of finishing, these condominiums can range in price anywhere from $130,000 to $230,000. Why that’s over $330.00 a foot in some cases. And, it’s true that more buyers in this type of market are willing to pay more for “high end” finishing. Even at this, single dwelling homes in Calgary sell for far more than these condos. So, considering everything, this is still a good deal in the city of Calgary.
Have you seen some of these smaller urban condos which dot Calgary’s core? Have you seen the modern furniture in the show suites? This furniture is sleek and stylish for a “perfect fit” for these condominiums. Have you noticed that this type of furniture is actually scaled to the smaller size of these condos?
Not only are sleek furnishings available for smaller condominiums, but many of these units are completed with “high end” finishes. Many show suite condos include gleaming granite counters in the kitchen as well as glossy hardwood floors throughout the unit. This is all in addition to large windows with great views that are found in rooms with high ceilings and crown mouldings. On top of all this, a gourmet kitchen can be yours with all the latest stainless steel appliances. And furthermore, a sumptuous ensuite can be yours as well in these smaller units.
It is interesting to note that these upscale smaller condos are usually found near the core within walking distance to work and play which makes them very desirable. This is especially true for the first time buyer, and someone buying a condo for an investment. “Luxury” within walking distance to amenities is a winning combination!
So why are these smaller expensive condominiums so popular? What is the driving force in the market behind them? There are many factors to consider.
The first driving force is the value of land. There are very few lots available in Calgary’s downtown core. So, you can imagine that prices for any available space near the core have “sky rocketed” and increased. Then, also, construction costs have also gone up over the last several years.
Between this and the cost of the land, the profit margin a developer is going to make has decreased. A way that developers have addressed this issue is to build smaller and more expensive condominiums. These developers can quench the thirst that the real estate market has for both quality and creative design. Now these developers have created smaller sized floor plans that are well appointed. As a result, they can charge more per square foot.
Not only is there less land on which to build condos near our city’s core, but there is a great influx of young educated workers that are making Calgary their home. Did you know that Calgary has the highest percentage of people with post secondary education in all of Canada? As interest rates are low, many of these young people are considering purchasing rather than renting. After all who wants to rent, when you can be putting “equity” down on a property that is yours?
Although these young and educated people have just graduated from college or university, they are looking to purchase a property within their budget. With such budget restrictions, these young professionals are looking for a home they can afford to purchase. And with some of these condominium developments having occupancy of at least eighteen months away, this gives young buyers the time to save money for a down payment needed to close a real estate deal.
And, what an investment this is for any buyer! Just sit back and watch as your equity grows right before your very eyes. While you own your condo, you’re also making money. Anyone would concur that this is a “win win” situation!
While some people have complained that this type of smaller and more expensive condo doesn’t have a niche in the current market here, real estate sales have proved them wrong. Smaller and more expensive cadmiums are here to stay.
…at least for now.