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
TorstenKandt schrieb:
Why do you consider the location just mediocre? I was there recently, and sure, the residential area doesn’t look particularly attractive now, but the location itself is great: forest, kindergarten, supermarket, commuter train, city center, swimming pool... all within walking distance. In my view, this is a typical “external investor” project; owner-occupiers will be the minority. Worst case, you find yourself alone in the owners’ meeting with the property manager representing all other co-owners.
Grundaus schrieb:
Are both buildings being constructed simultaneously, and are apartments being sold in both? That would be unusual, since a phased approach has advantages for everyone (buyers, sellers, including contractors). No, in perimeter block developments this is actually the norm.
Grundaus schrieb:
If the apartments are spread out, there is probably no risk of an investor taking over. Clarifying that would go beyond the scope here.
Grundaus schrieb:
If someone buys 3-4 apartments, they are not a threat to the homeowners’ association. Please feel free to elaborate on that.
TorstenKandt schrieb:
There are other houses planned (on separate parcels), but no apartments for sale in those yet. Perhaps you just don’t see them because they are marketed through different channels.
mayglow schrieb:
Since I had just posted here (quote: “it’s the same with the few sold units in our case”), I also wanted to mention that we were informed today—surprisingly—that our developer has filed for insolvency. (Tecklenburg) More on that will follow over there.
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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TorstenKandt20 Feb 2024 09:14By the way, I decided not to proceed with the purchase. The project developer Bonava appears to have serious financial difficulties, which makes it too risky for me.
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Allthewayup20 Feb 2024 20:02In the current situation, I personally would also avoid investing money in a project that has only been planned. The risk right now is too high for me. The media has shown how quickly even large investors can become insolvent.
TorstenKandt schrieb:
By the way, I have decided not to proceed with the purchase.That seems reasonable and understandable to me; I also appreciate that you are not making this decision quietly but sharing it with the community.TorstenKandt schrieb:
The developer Bonava appears to have serious financial problems, which to me is too risky.That seems to be the current “normal” situation in the industry, with many developers close to insolvency at least. By the way, I believe I already responded to this at 9:52 am this morning:
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
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tochris0612 Mar 2024 00:23I have just purchased from Bonava. I can’t imagine they are at risk of bankruptcy anytime soon. The restructuring mainly affects their in-house craftsmen. Outsourcing has become more cost-effective there.
However, I made sure to have the contract include a clause allowing me to terminate the manufacturer’s obligation according to Section 648a of the German Building Code. At least that provides some security in the event of a possible insolvency.
At the moment, it seems there is no risk-free option to buy anywhere. For me, a well-established company like Bonava is still the safest choice.
However, I made sure to have the contract include a clause allowing me to terminate the manufacturer’s obligation according to Section 648a of the German Building Code. At least that provides some security in the event of a possible insolvency.
At the moment, it seems there is no risk-free option to buy anywhere. For me, a well-established company like Bonava is still the safest choice.
tochris06 schrieb:
At the moment, it seems risky to buy anywhere. I still prefer a market leader like Bonava. Nothing roars louder than a market leader. I was just approached by a headhunter; the insolvency sector urgently needs workers.
Buyers of condominiums face other insolvency risks besides delayed completion or unfinished construction. Who the insolvency administrator sells the "remaining" units to is also a significant risk!
https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/