A Torontonian Now
Senior Member
Yesterday:
Toronto 252 Church | 166.1m | 52s | CentreCourt | Arcadis
- Thread starter Marcanadian
- Start date
Raymond123
New Member
With the crazy high prices CentreCourt sold to unsuspecting buyers ($1600PSF+) vs re-sale now at $1000-1100PSF, they better build as fast as they can and run with the money they collected. Obviously many ppl will walk away from deposits in this project/lawsuits coming. Great case study for developers who got carried away and lost track of reality...
innsertnamehere
Superstar
Developers? You mean buyers getting carried away?
Raymond123
New Member
Well both. Look at the other A++ builders like Daniels, Pinnacle, Great Gulf, Tridel, etc. They were not dumb enough to price these precons at the peak of the market at the high end. Reputation is on the line. Both buyers and some builders got FOMO. I get it, but the ramifications for some of these builders is going to be painful. Centrecourt is guilty of using splashy marketing, using smooth talking sales people to pump up their products. Lord have mercy but they fleeced buyers buy charging about 25-30% over resale at the time of launch. Now its looking like a 50% overpriced products.
karledice
Senior Member
The fact that Centercourt is charging $1600 psf at this location while Tridel is charging $1200 at the Well is insane
Raymond123
New Member
So apparently Centrecourt priced 252 Church 2BRs @ $1398 PSF, 1+1 @ $1630 PSF, 1BR @ $1606 PSF, Studios @ $1900 PSF (Source: https://www.talkcondo.com/toronto/252-church-condos/)
*Highway robbery at it's finest. I like the building design though (looks nice/stands out). I just think, Centrecourt is at fault here for price gouging. The took advantage of investors/end-users alike who got sucked in.
Rascacielo
Senior Member
They can price whatever they like. What kind of buyers would pay $1,600/ sq ft without doing any due diligence (including the builder’s reputation, how much are other builders charging, etc)? Perhaps those who think that a 40-60% drop in price is still better than losing 100% of their ‘hard-earned’ assets plus whatever fine and maybe even jail time.
Lyphe
Active Member
Exactly. Market pricing is market pricing, and that is what the market was at the time, correctly or not.
The correct price of an asset is whatever the market will pay for it at any given time, no matter where the market moves after that. I agree the price PSF is crazy, but that is more on the buyers than the seller.
Raymond123
New Member
That was definitely not "market pricing". It was an anomaly compared to resale or even similar pre-con launches in the area. For some reason, CentreCourt priced this like it was the launch of the Shangri-La building or something. What a joke. All in all, yes buyers share the blame as well as realtors and those platinum agents
karledice
Senior Member
OMG this is priced the same as King west or Yorkville while in this transitional neighbourhood with no balconies LOL
Raymond123
New Member
CentreCourt premium, baby!!! All jokes aside, this will go down in history as one of the most grossly overpriced pre-con launches in all of Canada
innsertnamehere
Superstar
If it wasn't market pricing why did the building sell out?
The fault lays solely on the buyers. Centrecourt didn't hold them at gunpoint to give them their money.
Raymond123
New Member
Look up what "FOMO" is. Basically, Peak market euphoria/ a bubble which many failed to realize or see in hindsight. Any of the top builders could have pulled off what CentreCourt did. But they weren't dumb enough to try. They know that you can't price pre-con way above re-sale in case of potential market corrections. Also reputation risk among other issues like defaults/legal costs with ppl walking away from deposits. Both buyers & builders alike got FOMO at the same time. Psychologically, I don't blame them. Learning Lessons for all
Collingwoodbuildinglover
Active Member
So question as I'm not in the know on the pre-condo market if you walk away from your deposit does that mean the developer keeps the deposit and you basically take a bath?
Raymond123
New Member
For the record, there are better resources for this type of detailed info like reddit. But basically, if a buyer walks away after placing a deposit, they forfeit that deposit & risk facing litigation for price differential when the builder re-sells the same unit at market value to a new buyer. Original buyers may consider bankruptcy if the losses are severe and they can't pay up. Similar to a resale market transaction where buyer firms up and slips out of a purchase transaction. I have heard of massive losses on Exburb freehold properties ($200k-500K) type drops in appraisal value compared to pre-con: so those are the real massive losses. Generally these condo losses are "small" except for one-offs like 252 CHURCH.