This just in: according to A-Channel News Victoria, the Delta Ocean Point Resort amongst other downtown hotel properties have been listed for sale. According to the RE investment group the hot RE market has presented a unique opportunity to sell these properties.
I'm guessing the hyper-inflated price of RE in Victoria coupled with the decrease in tourism equates to "unique opportunity".
When the big boys of RE investing sell can the rest of us take this as a sign of the top?
UPDATE: After some digging, it turns out that the Delta and Harbour Towers are both owned by CHIP REIT. There are no announcements on their website regarding this news.
FURTHER UPDATE: This article in the Toronto Star suggests that every asset of CHIP is for sale, as is the trust itself. It seems that this decision has more to do with tax law than RE market status.
"Citing changes in federal taxation of income trusts, Canadian Hotel Income Properties Real Estate Investment Trust (TSX: HOT.UN) has signalled it's for sale"Why did A-Channel reference "hot market conditions" as a possible reason?
FURTHER FURTHER UPDATE: The Vancouver Sun has this article that also suggests that CHIP may be selling because of hot market conditions.
I'm thinking I'm reading too much into this. If I was a trust holder I'd probably be happy with both the performance of my units and the potential sales of these properties. Makes sense.
5 comments:
Why did A-Channel reference "hot market conditions" as a possible reason?
Because they don't do investigative journalism.. They only repeat what is on the newswire and in the monthly emails from VREB.
This is another viewpoint
A-Channel does the "socially responsible" journalism and rarely the gutsy stuff.
For once I would like to see one of them actually discuss the fact that prices can indeed fall and have in bubbles past. It all comes down to them not wanting to offend the advertising bucks on their client list and the fact most of them own houses so why shoot the golden goose ? They will wait til they have no choice but to say price reductions are a reality,they want their stories handed to them on a golden platter. If they dug abit like some of us do they would see reductions are happening in bits and pieces but wouldnt want to upset the masses the fairy tale may well be coming to a tragic end.
So sad but true. No investigative journalism anymore. I want Woodward and Bernstein back.
I am looking forward to next weeks March stats from VREB. Here are my predictions:
Total active listings 3200 - up 29% from March 2006 (2475) - Feb 2007 was 2950
Total MLS sales - 780 - down 8% from March 2006 (843) - Feb 2007 was 707
New MLS listings - 1360 - same as March 2006 - Feb 2007 was 1220
Greater Victoria average SFH price 530K - down 6.2% from March 2006 (565K) - Feb 2007 was 534K
On the way down. Anyone else care to make a prediction?
Roger,
I'm willing to predict there is much price compression going on.
It's been a slow week at the bottom end, and really a slow month... not a ton of listings or sales. A fair amount of price changes though.
I'm working on the regular Friday post now, it'll be up soon.
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