More buyers attracted to city's condo market
By Mario Toneguzzi
Calgary Herald September 20, 2011
Two high-profile projects will launch into the next phases of their development this weekend, suggesting the city may be poised for a residential condo rebound.
Keynote Urban Village will open its doors to a new show suite for its second tower in the east Beltline area while University City will launch its Building 3 project near the Brentwood LRT Station.
"Activity in the condo market has been gradually improving," said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp.
"Gains in employment, favourable mortgage rates, and price reductions have attracted buyers to the condo market, especially those looking for their first place."
A majority of Calgary condo sales this year have been for units priced below $300,000, said Cho, who expects to see more apartment-type condos break ground in the coming months. "There has been an uptick in the number of apartment permits issued, signalling the intention of more activity," he said.
According to CMHC figures, the 451 apartment starts in August was the highest monthly total since May 2008.
The 29-storey second Keynote residential tower will include 250 suites.
Possessions are scheduled for summer 2013.
Project sales manager Jeannie Elrafie said sales have been surging during the past eight months and that's "telling us there is an upswing underway in the Calgary real-estate market".
"We're getting a lot more demand than we ever were," she said.
The Keynote development, which encompasses nearly an entire city block on 1st Street S.E., already includes a 26-storey residential tower comprising 179 units, and a 14-storey office tower that includes 40,000 square feet of retail space, occupied by the likes of Sunterra Market, Starbucks, and an RBC Royal Bank branch.
The city's subdivision and development appeal board last week approved construction of the first two condo highrises for the University City project.
An invitation for this weekend's VIP launch of the third building says 400 condos sold in five days for the project's first two buildings.
A public launch is expected to be announced next week.
The first two towers are 18-storeys, each with 216 units.
The University City website states the project's third and fourth phases will consist of 12-to 14-storey buildings.
The planned fifth phase will be four storeys.
