Archive for January, 2012

South East London- The Condos at 725-739 Deveron Crescent

Wednesday, January 11th, 2012

By Peter Daoust, Remax Advantage Realty Brokerage Limited. A shelter from the storm. When you think about it, that’s what a house or condo should really be all about. A place to rest your head at nights that is dry, warm,comfortable and safe.

Thats what the three hundred and fifty plus low rise unit condo buildings on Deveron Crescent are really all about. A complex with two outdoor pools for summertime enjoyment and indoor saunas and whirlpools. Busses near the front door go directly to the Victoria Hospital down the street to the west. What’s more, in a three minute walk in one direction there is a library and in a three minute walk in another direction is a mall with a foodstore.

The complex consist of one, two and three bedroom units all with livingroom gas fireplaces and balconies. Our November 16th/2010 blog gives a history of these buildings.

Are these units good investments at this current time? Well in answering this question we must first examine one other issue. How is London as an engine of growth faring? 2011 was not a particularly kind year for the city. We all know that our unemployment rates near the end of the year were creeping up to near double digit levels. Yet in defense of these numbers we also saw this same situation with our unemployment rates back in 2009.

The point should be made that as we sit and contemplate our economic woes our arteries are still clogged with rush hour traffic and our parking lots at Costco and White Oaks Mall are often full. In a similar way, our hospitals and university are forever getting bigger. With a high percentage of our population who are retirees or soon to be retirees life here in town pretty much goes on at a steady pace despite what our economic indicators seem to be telling us.

In real estate when times get tough most homeowners and investors just hunker down and wait out the storm. Thats what happened with the Deveron complex like many other London condo complexes in 2011. Trading activity (# of units sold) dropped by thirty percent from the levels witnessed a year earlier. As for price changes – here are the statistics that we have figured out using the data from our real estate boards reported MLS sales. In 2011 the average price of a one bedroom condo was $78,600 (a price drop of 3% from the previous year). The average selling of a two bedroom unit was $102,500 (down 2.9%) and the average selling price of a three bedroom unit was $120,700 (down 2.2%). For comparison sake the average selling price of a two bedroom unit back in 2009 as previously indicated on our website was $100,500.

Should residences of these building be concerned with these numbers? Well remember how we started the blog talking about a place to sleep at night that is dry, warm and comfortable? Do not these consideration overshadow the importance of statistics showing that prices are wobbling up and down?

If you are considering getting into the real estate market as an investor or as a new homeowner might we suggest that now is a good time as any to make the plunge. Vacancy rates across the city are on the decline and new construction costs are rising. The way we see it, these Deveron condos are a safe haven in these turbulent times.