EMPIRE UPDATE RE: COVID-19View Updates
Everyone knows the old adage when purchasing real estate: “location, location, location”. And most would agree that the value of superior location in real estate is a fact – the old adage is not a mirage.
But purchase success is not just based on location. It’s also rooted in market timing and how that relates to supply availability and local competition, both new and resale. Those projects which are timed to be completed when few others are in the completion stage, with few nearby comparable developments or low local resale supply, typically fare well. If there are fewer comparable developments in the immediate sub-market area, investment stability and growth tends to be better and resale or renting the unit tends to be easier.
This is the scenario that is now emerging for Empire’s Rain & Senses community, located at Speers Road and Kerr Street in south Oakville.
According to Urbanation (the “Bible” of the GTA condominium apartment market) Rain & Senses is the only active new condo project located in Oakville South with significant units available under $500,000. Even in the resale stock, choice in the immediate sub-market is very limited. The closest resale condo to Rain & Senses has no active listings as of the end of Q1 2016.
Oakville South has historically been the most desirable part of Oakville. More established, mature, with proximity to Lake Ontario, Lakeshore Road retail, the QEW and, increasingly important, the GO Train at Oakville Station. However, there are really few choices other than Rain & Senses in the desired south. In fact, Rain & Senses is the South Oakville supply, with no other new, comparable alternatives in the immediate area.
One of the main differences between Rain & Senses and most of the new condos available in Oakville, south or north, is stage of construction and project timing. Rain is the only new condo community in South Oakville that currently has built units priced under $500,000, ready to occupy now.
The only other new “move in ready” units in Oakville are located in the North, mainly near Trafalgar and Dundas. However, most of the remaining units there are priced over $575,000 and 4 of the 6 new condo projects in North Oakville that are currently pre-selling or under construction have estimated completion dates of mid to late 2017.
There really are few other choices than Rain in south Oakville for 2016 occupancy and even those choices are slim, with just 20 units remaining at Rain. If you are looking to move this year and want to live south of the QEW, close to the GO Train, Rain is for you.
In mid 2017, Senses will be complete. By then, this phase will likely have no more than 50 unsold units and will again be the only new condo project to be completed south of QEW in 2017 (other than The Randall, priced upwards from $1.7 million). In fact, with most of the North Oakville projects not likely to be completed until at least the second half of 2017 or later, Senses will represent the only significant ‘move in ready’ units in Oakville through most of 2017.
Looking further into the future, the lack of condo projects in South Oakville currently pre-selling indicates that once Senses is completed, there will be no other buildings in the sub-market which will follow Rain & Senses and add to local supply.
This means that once completed, Rain & Senses units will face little or no direct competition for resale or rental from other new developments in the same area. It will be one of the few choices to live affordably in south Oakville for the balance of 2016 and through 2017. And provide bright prospects for resale and rental in the years beyond because of less local competition in a desired area close to the GO Train. A great place to live and a solid investment, Rain & Senses demonstrates the delicate balance of timing and location when making smart real estate investments.
Find out how Empire’s making owning at Rain easier than ever, here.