ᐅ Only one-third of the new apartments sold 1.5 years after the launch
Created on: 7 Jan 2024 11:27
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TorstenKandt
Hello everyone,
I am considering buying a condominium in Düsseldorf Benrath. The developer Bonava is building two apartment buildings with a total of about 90 units. Sales started in summer 2022. Currently, 1.5 years after the sales launch, the shell construction is completed, and the move-in date is scheduled for autumn 2024 (according to the developer, construction is fully on schedule). What puzzles me is that of the 90 units, only about half are currently “officially” on the market or have been listed on the website, and of those, only about half have been sold so far. So overall, only about one-quarter to one-third of all units have been sold, 1.5 years after the sales started and three-quarters of a year before completion. Bonava is also advertising extensively through Google Ads and has numerous listings on property portals like Immoscout.
Does anyone know if this is normal (in today’s market), and whether there could be any risk for me as a buyer if the developer does not sell all the units? As mentioned, the shell is finished, but windows, electrical work, and other installations are still missing.
Best regards
Torsten
I am considering buying a condominium in Düsseldorf Benrath. The developer Bonava is building two apartment buildings with a total of about 90 units. Sales started in summer 2022. Currently, 1.5 years after the sales launch, the shell construction is completed, and the move-in date is scheduled for autumn 2024 (according to the developer, construction is fully on schedule). What puzzles me is that of the 90 units, only about half are currently “officially” on the market or have been listed on the website, and of those, only about half have been sold so far. So overall, only about one-quarter to one-third of all units have been sold, 1.5 years after the sales started and three-quarters of a year before completion. Bonava is also advertising extensively through Google Ads and has numerous listings on property portals like Immoscout.
Does anyone know if this is normal (in today’s market), and whether there could be any risk for me as a buyer if the developer does not sell all the units? As mentioned, the shell is finished, but windows, electrical work, and other installations are still missing.
Best regards
Torsten
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TorstenKandt10 Jan 2024 07:06Thank you for the many responses.
Why do you consider the location more than mediocre? I was there recently, and clearly, the residential area doesn’t look particularly attractive right now, but the location itself is great: forest, kindergarten, grocery store, suburban train, city center, swimming pool... all within walking distance. Is it not safe there?
jens.knoedel schrieb:
Personally, I don’t find the apartments in Benrath very impressive. The location is more than mediocre.
Why do you consider the location more than mediocre? I was there recently, and clearly, the residential area doesn’t look particularly attractive right now, but the location itself is great: forest, kindergarten, grocery store, suburban train, city center, swimming pool... all within walking distance. Is it not safe there?
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jens.knoedel10 Jan 2024 07:20TorstenKandt schrieb:
Why do you consider the location more than just moderate? I was there recently, and sure, the residential area doesn't look particularly nice now. Not particularly nice. You said it. Right next to the vocational college and industrial zone.
Aldi and similar stores are convenient but don’t improve the situation.
Living there is basically complaining at a high level. Vivawest has built a neighborhood southwest of here. As a tenant, you still easily pay €15 per month rent excluding utilities — despite the location.
Are both houses being built at the same time, and are apartments being sold in both buildings? That would be unusual, as a phased approach has advantages for everyone involved (buyers, sellers, including contractors). If the apartments are scattered, there is probably no risk of an investor stepping in. Someone buying 3-4 apartments is not a threat to the condominium owners’ association (HOA).
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TorstenKandt10 Jan 2024 09:52Grundaus schrieb:
Are both houses being built at the same time, and are apartments being sold in both houses?Yes, and they are located on two different parcels of land. There are also additional houses planned (on other parcels), but there are no apartments for sale there yet.
Since I just posted here (quote: "it’s the same with the few units sold in our area"), I also wanted to mention that we were informed today—quite unexpectedly—that our property developer has filed for insolvency. (Tecklenburg)
The press release hints that they were unable to sell already completed units in another major project (and I assume at the same time their own interest costs for the advance payments they had made increased significantly). So, this context might be somewhat relevant to know.
I have written elsewhere that I still have quite a bit of hope that everyone involved has an interest in completing our house (we are already quite far along). But what exactly lies ahead for us now, I do not know yet.
The press release hints that they were unable to sell already completed units in another major project (and I assume at the same time their own interest costs for the advance payments they had made increased significantly). So, this context might be somewhat relevant to know.
I have written elsewhere that I still have quite a bit of hope that everyone involved has an interest in completing our house (we are already quite far along). But what exactly lies ahead for us now, I do not know yet.
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TorstenKandt10 Jan 2024 14:13mayglow schrieb:
I also wanted to mention that we were informed today (surprisingly for us) that our developer has filed for bankruptcy. (Tecklenburg) Oh dear, I wish you all the best! (I recently read about a bankrupt developer where another company took over everything, so the buyers were still able to get their houses without additional costs, just with a delay).
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