Builders are willing to cut profits to attract customers with assets
(Source: Vancouver Sun)
As home prices and retirement investments take a dive across North America, housing developers are changing strategies just to stay in the game.
Vancouver Island developer Dave Steele and his partners are betting that by making a dramatic shift in their expectations for a 62-unit, beachfront, resort-style project near Qualicum Beach, they’ll be able to build some houses while others have stopped.
“Our philosophy is that we want to be there,” Steele, a partner in Qualicum Landing Developments Ltd., said in an interview, to catch a slice of the demographic trend that is seeing nearly 10 million Canadians (some 1.3 million of them British Columbians) roll toward retirement.
However, to “be there” in the current market means squeezing margins and exploiting the more competitive market for construction trades to reduce prices on the initial phase of the project some 27 per cent from when the firm first drew up its plans two years ago.
Read Derrick Penner’s full article “Developers trim prices to keep baby boom buyers in the market” in the Vancouver Sun (May 13, 2009).