While the condo demand is high, it is especially so for condo
conversions, since transforming an existing structure to individual
condos is cheaper, quicker and generally less risky than building
one from the ground up. A condominium conversion is the
process whereby a piece of rental property, such as an existing
apartment building, hotel or commercial property, is transformed
from a property wholly owned by a single title holder to individual
units put up for sale to the public. Aside from the product
demand, attractive economic incentives are also driving land owner
and developer-converters towards the condo conversion market. Conversions have been cited as a way for owners to turn a
substantial profit. For developers, a conversion represents
the opportunity to turn a quick profit, since the aggregate value
of individual for-sale units far exceeds the value of the property
when it is placed for sale as an apartment building.
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