Many investors hoping to flip presale units at Westbank’s Vancouver House condo project have failed in their attempts as other potential buyers flee the region’s falling housing market amid attempts by the province to crackdown on money laundering in real estate.
Only three out of the 22 units that came on the market in the last three months have been successfully sold, with the units fetching between $1092 to $1254 per square feet.
The most expensive sale recorded a 612 square foot unit that sold for $750,000, down from the asking price of $853,800.
The higher end units, and sellers trying to ask for astronomical per square foot rates, appear to have had no luck.
Westbank sent a notice to assignment flippers last month asking them to taking their listings off the market as the building nears completion, but at least one unit is still on the market as of today.
| Units | Square Footage | List/Sold Price | Price/SQFT | Status |
|---|---|---|---|---|
| 1801 | 604 | $660,000 | $1,093 | Sold |
| 2701 | 612 | $750,000 | $1,225 | Sold |
| 1102 | 578 | $725,000 | $1,254 | Sold |
| 2102 | 757 | $1,499,000 | $1,980 | Active |
| 3608 | 454 | $675,000 | $1,487 | Taken off market |
| 2711 | 482 | $630,000 | $1,307 | Taken off market |
| 5603 | 2,143 | $4,788,000 | $2,234 | Taken off market |
| 4702 | 2,071 | $4,398,800 | $2,124 | Taken off market |
| 4608 | 1,192 | $2,288,900 | $1,920 | Taken off market |
| 5606 | 1,616 | $2,998,900 | $1,856 | Taken off market |
| 1506 | 534 | $968,000 | $1,813 | Taken off market |
| PH7 | 3,252 | $10,500,000 | $3,229 | Taken off market |
| 5205 | 1,566 | $2,888,900 | $1,845 | Taken off market |
| 3703 | 1,871 | $3,388,000 | $1,811 | Taken off market |
| 2611 | 415 | $698,000 | $1,682 | Taken off market |
| 805 | 847 | $1,368,000 | $1,615 | Taken off market |
| 5303 | 2,136 | $4,288,800 | $2,008 | Taken off market |
| 3806 | 1,046 | $1,998,800 | $1,911 | Taken off market |
| 4002 | 1,934 | $3,898,000 | $2,016 | Taken off market |
| 1603 | 513 | $630,000 | $1,228 | Taken off market |
| PH9 | 1,879 | $5,588,000 | $2,974 | Taken off market |
| 1801 | 604 | $839,000 | $1,389 | Taken off market |
Raymond Ye of Sunrich Realty responsible for two of the successful listings while Karim Virani of Virani Real Estate Advisors appeared to be the realtor associated with at least five of the unsuccessful listings.
Westbank heavily marketed Vancouver House in China and more than 35% of the condo units were purchased by foreign buyers.
The controversial development company is open about only building for what it calls the “Chinese Market”.
“But right now I have a rule when we talk about projects if the Chinese market doesn’t want it, I have no interest in it.” Westbank’s Director of Marketing Michael Braun said on the Westbank website
“But right now I have a rule when we talk about projects if the Chinese market doesn’t want it, I have no interest in it.” Westbank’s Director of Marketing Michael Braun said on the Westbank website 1.
Westbank, headed by Federal Liberal and Vision Vancouver bagman Ian Gillespie, has gained notoriety for pitching Vancouver’s estate market to buyers in China with the “Vancouver’s becoming a safety deposit box for the global rich!” as the selling point2.
But a concerted effort by British Columbia’s NDP government to root out speculation and money laundering from the Lower Mainland’s real estate market combined with efforts by China to stanch the outflow of capital from the country seems to be cooling the region’s once runaway housing market.
Premier John Horgan announced on Wednesday that the province will hold a public inquiry into money laundering after a bombshell report from an expert panel concluded that more than five billion dollars of dirty money had been washed through the region’s real estate market last year alone3.
“From day one, our government has been working to tackle the housing crisis and fraud that went unchecked for over a decade, hurting people and B.C.’s economy,” Premier John Horgan said. “We have taken decisive actions to combat money laundering, but questions remain and people in B.C. deserve answers. That is why we have decided to proceed with a public inquiry into money laundering in the Province of British Columbia.”
“From day one, our government has been working to tackle the housing crisis and fraud that went unchecked for over a decade, hurting people and B.C.’s economy,” Premier John Horgan said. “We have taken decisive actions to combat money laundering, but questions remain and people in B.C. deserve answers. That is why we have decided to proceed with a public inquiry into money laundering in the Province of British Columbia.”
What happens if the buyer can’t close?