Canada's Housing Bubble

Sep 08, 2010 Damian Inwood and Kent Spencer The Province

Sixty-six per cent of Vancouver's pricey Olympic Village condos remain unsold -- a total of 483 units at the massive False Creek development that served as athletes' housing during the two-week 2010 Games.

Vancouver Mayor Gregor Robertson, whose city remains on the hook for more than $1.03 billion of the cost of the project, predicts it will take a "full two-year term" to sell the remaining units.

"There is some concern we're going into another [economic] dip," Robertson said last week. "[But] I have full confidence in the developer and the marketing taking place.

"I hope the market kicks in and they get sold. I'd like to see it fill up sooner rather than later."

A spokeswoman for condo king Bob Rennie, who is handling the sales, said Tuesday that a major marketing campaign will begin later this month for the unsold units.

"Incentives are yet to be determined, but they could include things like free washers and dryers," she told The Province.

The suites, priced anywhere from $400,000 to $5 million each, have been subject to the HST since July.

Although Vancouver made 120 rental units available for workers such as police officers, firefighters and nurses, only 61 were taken as of June (no up-to-date figures were provided by the city or Rennie). Nevertheless, Robertson said he expects that to change.

"Many more people are applying for spots than are available," he told reporters last week.

The city's investment in the project includes a $750-million loan plus undisclosed interest payments, $120 million still owed to the city for the land and a $110-million outlay for 252 affordable-housing units.

Today, six months after the 2010 Olympic Games, the village resembles a ghost town.

Walking down the empty streets last Saturday afternoon, it was hard to find anyone living in the $1.2-billion former Olympic Village.

Even the security guards conceded there's not much to do at the "showcase" Millennium Water development, where 254 condos have sold.

"It's weird," said Heather Eddy, who recently moved into a sixth-floor rental unit at West 1st and Columbia with her boyfriend, Allen Roberts, 30, an engineering student at Simon Fraser University. "It's almost living in a futuristic police state. All you see are police cars driving around and people on bicycles."

Eddy, a 24-year-old pastry chef, said she believes the village was opened too early.

"It's very much like a ghost town," she added. "I'm scared to walk down the streets at night."

The couple, however, said they love their 850-square-foot apartment with its high windows and top-end appliances.

Near the renovated Salt Building, Mitch Williams described himself as a "lookie-loo" checking out the views.

"This place is spooky," said Williams, a 41-year-old telecom worker from Port Moody. "It's like a sci-fimovie. I don't see any patio furniture and there's nothing on the balconies."

The complex totals 1,108 units made up of condos, rental units and affordable housing, but its new, $36-million, 45,000-square-foot community centre seemed deserted Saturday.