Luxury condo liquidation at weekend auction
In Langford, B.C., DFH real estate agent Peter Gaby is busy with last minute preparations at the Reflections condo development.
Times are tough and that has forced the developer to liquidate his luxury condos at a public auction this weekend.
"The developer is in a position where he has to sell some suites to satisfy the banks," he says.
"One goes into any project or development with optimism so we really didn't expect this drop off so quickly," says developer Andrew Khoo.
Ken McCauley is looking for a new place, but isn't keen on the auction idea.
"I don't think I want to become involved with that," he tells CTV News. "I always seem to say the wrong thing at auctions."
But for buyers, there may be potentially huge savings on at least 40 brand new condos and town homes, just outside Victoria.
They're not quite fire-sale prices, but they are at -- or below -- the developer's cost.
"The discounts range from $34,000 and $110,000," says Gaby. "So on average, it's about $60,000. I would say that's an incredible deal. Yeah, it's unbelievable."
A couple of years ago, as the Reflections development was being built, sales were brisk. But as the economy tanked, so too did the interest of buyers. Dozens of them walked away, rather than completing their purchases.
Selling off these units at auction is no doubt unusual and it's a reflection of the desperate times.
"It's certainly very unique," says Chris Markham, president of the Victoria Real Estate Board.
"I've been selling real estate for 25 years and this is the first time I've seen this. He's getting good press, and I think he'll do very well."
"From our perspective, we would be very happy to sell 20 to 30 units," says Khoo.
And that may be just the right medicine for a developer looking for money and buyers looking for a good deal.
With a report from CTV British Columbia's Jim Beatty