BuzzBuzzHome Corp.
March 29, 2010

Yikes! Being a residential developer in Calgary right now must be a scary place.

Only a few years ago, the skyline of Calgary (development map) was filled with the unofficial bird, ‘The Crane’… now most of the cranes are gone in the downtown core, and potentially nearing the end of the construction cycle.

According to the Calgary Herald:

“The recession clearly jeopardized some residential condo projects. From 2006, it’s estimated 17 condo projects were put on hold or cancelled after launching their sales campaigns.”

Last month, economic consulting firm the Altus Group described the local condo market as “mired in a slump”… there are about 2,000 unsold units (down from 3,200 a year earlier)…. of which half the decline was due to cancelled projects.

Some condo projects are coming back, after a “pause” of 18 months, reflecting the current economic situation with lower pricing.

According to the BuzzBuzzHome development for downtown Calgary, there are roughly 15 combined low rise and high rise projects under construction.

I imagine we will start to see some more unique and aggressive marketing campaigns as developers try to sell of the 2,000 condo units still on the market.

But.. like any residential market, there are still developers and builders who will try to make a go at it. Check out Calgary’s Eau Claire, Destiny and Alberta Boot or Prospect Hill and Strathridge Lane which are in the early stages of selling.

Well.. it must be a scary place to be developer, but an exciting time to be marketing the projects (remember MidTown Calgary’s advertising folly of last week?).

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