Edmonton VS Calgary - Rental Pricing

[thommyjo]

You were able to find some in Encore, Falcon, View and others.

2bdrms in encore are all 480+

But even the styles of like fox and others...very 2010 suburban vibe. Vs modern downtown looks.

 

[thommyjo]

Here are a collection of photos from a few minutes on Realtor.ca in both cities...

There's a clear winner for price and style. Know those old mac and pc commercials? Edmonton is the pc right now for condos...

 

[Seandroid]

Exactly. It’s not news that you can buy cheaper condos in Edmonton, the frustrating thing is that you can get way more for your money in Calgary. There is clearly demand for newer buildings, but they’re pricing people out of them.

…why?

 

[ChazYEG]

Exactly. It’s not news that you can buy cheaper condos in Edmonton, the frustrating thing is that you can get way more for your money in Calgary. There is clearly demand for newer buildings, but they’re pricing people out of them.

…why?

My opinion? A mix of bad market research, greed and the lack of competition, as the city is basically in the hands of 3 or 4 major developers, some of which also have suburban developments, meaning they care less about downtown high-rises

 

[IanO]

2bdrms in encore are all 480+

But even the styles of like fox and others...very 2010 suburban vibe. Vs modern downtown looks.

There were multiple 2bdrms under or around 400 at various points of their sales process.

 

[ChazYEG]

There were multiple 2bdrms under or around 400 at various points of their sales process.

@IanO, it just happens that sales happen at times other than the pre/construction. I wasn't even living in Canada when they were selling units for these prices and, if I wanted to get one now, it's 480k+.
Same goes for quite a few buildings. It's not that we don't have stock of under 400k condos in the area, but we have VERY FEW of the newer ones.

 

[IanO]

I don't disagree that we need more modern condos in the 250-400k range as it is most city's bread and butter but they were most definitely advertising some of their smaller 2bdrms under 400k.

 

[ChazYEG]

I don't disagree that we need more modern condos in the 250-400k range as it is most city's bread and butter but they were most definitely advertising some of their smaller 2bdrms under 400k.

They were, about one to two years ago, Ian, when they were building it and it wasn't yet all (or almost) sold. That's the issue, too. Right now, if I wanted to get a newer condo for 400k or less, I would have a really hard time finding it. Most are hovering at around 500k or more

 

[Tommy2342]

For the most part, $400K for a two bedroom new construction is around the market limit in Edmonton. Developers are getting greedy trying to push above $450K (you can get a larger house for that five minutes from downtown ). $375 to $400 per square foot is what the market will bear for pre-sale condos. A friend just bought in the Icon 1 for $275 a square foot, resale (it's a ten year old building, but it gives a potential buyer of a new condo a glimpse of what their unit will be worth in ten years). Luckily, $375 to $400 a square foot should still be profitable I'd imagine, as land is cheap.

 

[IanO]

$275??!?!? Someone made a poor decision selling that.

$375-425 is indeed our bread and butter and very difficult to deliver when all is said and done.

$450-500 is far more realistic for new product.

 

[Tommy2342]

$275??!?!? Someone made a poor decision selling that.

$375-425 is indeed our bread and butter and very difficult to deliver when all is said and done.

$450-500 is far more realistic for new product.

Yup! I consider $300/sq. ft. a great deal for that building. So $275 was a steal! That price was fairly recent, so I'd imagine Covid has played a role in softening prices for condos in Edmonton, and downtown condos in Edmonton have been hit especially hard.

 

[IanO]

That's not softening, rather a motivated seller without care for their dollars.

 

[IanO]

Food for thought.

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