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The affordability of new concrete condominiums in the City of Vancouver has fallen noticeably in the last few quarters, according to UDI, which represents developers and this week released its second quarter report. 

By comparison, the UDI’s affordability index for new concrete condos in the suburban areas is more stable. 

Bennest said at one recent pre-sale of a development on Main Street, there were some “500 to 600 real purchasers” for about 100 units.  Developers understand that some “400 buyers might not be as keen” on buying if they moved the price higher. 

“People with more equity are (the ones) getting to buy when there is not as much choice,” he said. 

The development industry is generally known for believing the antidote to high prices is adding more supply.  But increasing density in the West End and downtown won’t bring down prices, Bennest said — particularly bearing in mind the designs for some proposed high-rises in the area. 

This week, Bosa Properties and Kingswood Properties filed an official rezoning application for another luxury condo building across from Cardero.  They are planning a 43-storey tower with 217 condo units in a design that involves several sets of cantilevered floors and looks like a giant stack of Jenga blocks.  Bosa paid $120.5 million for the land in 2014, according to vancouvermarket.com. 

“I don’t feel adding towers in the West End will increase affordability,” said Bennest.  The land prices being paid by developers are one thing.  There are also “the design guidelines,” he said. 

“When you go to 50 storeys, the construction costs are much higher.  Developers and the City of Vancouver want buildings they can be proud of aesthetically and in an architectural way.” 

Bennest cited the twisting shape of Westbank’s Vancouver House as an example. “ Every single floor plate is different because they (need to) sit 3/4 of an inch (off from the floorplate below)” in order to achieve the building’s shape.” 

“It’s going to be very expensive,” he said. 

jlee-young@postmedia.com