Just a quick update on an auction I mentioned in a post around a week ago:
Here is a link to the apartments that are being advertised (LINK), the auction is this Friday, it will be interesting to see what prices they get given the "no reserve" status of the listings. Link to previous post.
I posted the above with reference to adverts I had seen in a Google sidebar (an unusual way of advertising specific properties in my opinion), I came across this article which covered the auction results:
After more than 18 months on the market, the luxury Riverview On March apartments finally went under the hammer yesterday — and about 140 people came to watch as they sold for a song.
Valued at $650,000 to $700,000-plus each, four of the six units sold. They fetched $510,000, $320,000, $339,000 and $300,000.
Auctioneer Jason Andrew was made to earn his keep in cajoling every last dollar out of the buyers, but bidding was desultory for the two penthouses, which were eventually passed in because they did not meet the reserve price.
Developer Ron Blyth admitted he felt hard done by, with three of the four sold units going for less than half the building cost.
Even on the highest-selling apartment, Mr Blyth lost about $200,000 – or a total of about $1.2 million for the combined sales. FCC
It's not clear whether the loss was on actual development costs or just a loss based on what the apartments were previously valued at. Either way I think it shows that significant property price falls here aren't just a possibility, in some areas it's already happening.