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Major Kelowna development attracting plenty of buyers despite fears of speculation tax

Click to play video: 'Sales and interest strong at major condo development in downtown Kelowna despite controversial speculation tax' Sales and interest strong at major condo development in downtown Kelowna despite controversial speculation tax
Sales and interest strong at major condo development in downtown Kelowna despite controversial speculation tax – May 2, 2018

A new real estate in Kelowna will feature two of the city’s tallest buildings.

The One Water Street project will be home to two towers, one 36 storeys tall, the other 29.

“A project like this will not come around very often,” Leonard Kerkhoff with Kerkhoff Construction said. “That word is getting out and people are registering and wanting to be a priority buyer.”

Hundreds of people came out this past weekend as the development company unveiled tower number two.

“We are releasing all of our floor plans, and the model got put in place for the next tower,” Kerkhoff said. “New information that we are now allowing the public to come in and see.”

The units are expected to officially go on sale in the next few weeks and already there is a long list of interested buyers who have pre-registered online.

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“Right now, 5,000,” Kerkhoff told Global News.

That number is a roughly 30 per cent increase from the pre-registration list on the first tower.

Units in the first tower went on sale last October and the building is now sold out.

The brisk sales in the first tower prompted the developer to fast-track sales on the second tower by at least six months.

“It’s taken us by surprise how quickly it’s all come together,” Kerkhoff said.

Unlike other downtown Kelowna development projects, One Water Street appears to be unaffected by the incoming speculation tax.

“A lot of our target market again is the downsizers, the permanent residents where the taxes are not applicable,” Kerkhoff said.

“And investors who are buying a unit for the purpose of renting it out, the tax does not apply either…so the impact of the tax on this project is fairly limited.”

A few months ago, Westcorp announced it was halting its marketing on a major condo hotel project blaming the delay on the speculation tax.

Read More: Stakeholders in central Okanagan say speculation tax changes don’t go far enough

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Units at the second tower at the One Water Street development will officially go on sale in the next few weeks.

Construction on the first tower is expected to be completed in the summer of 2021 with the second tower ready for occupancy about a year after that.

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