A plan for a condominium development on the corner of Prince and Grafton streets in downtown Charlottetown has been dropped.

The project had gone as far as getting a hole dug for the foundation, but the city has now issued a permit for the hole to be filled in.

The original plan offered modern living just steps from downtown amenities. Construction of the four-storey mixed commercial/condominium should have begun in the spring.

The city has issued a permit to fill in the hole.

"[It] is very sad from a development point of view of the downtown,” said Coun. Edward Rice.

“The product was excellent as far as I could see. And having been in real estate for 25 years, I'd have to say the builder was a highly reputable builder."

The developer couldn't be reached for comment, but the real estate agent handling the project told CBC News he's disappointed. He can't say why the developer canceled the project, but they did have buyers.

Rice believes there isn't a big market for condos in Charlottetown.

"Charlottetown is a good place for multiple unit product. You're seeing that happening in the rental market where there's any number of buildings being built. And people are seeing that as an easier way than owning a property," said Rice.

Amanda Glydon, who lives right next to the site, hopes a new developer will build affordable rental units.

"Most of the people I know can't afford condos,” said Glydon.

“I mean people are talking about catering to all these business people. I don't know who they're talking about."

Rice said an upscale condo development is moving along in the Victoria Park area, and the demand to live downtown remains strong.