SaltnPepper
New Member
Attractive looking in my opinion. If built, I am doubtful it will look as nice as the render.
- Thread starter ferusian
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Northern Light
Superstar
One thing here, this building really makes no sense to build as anything other than a luxury property. I don't know how you pencil this in as a VE'd middle-of-the road site, I don't think you'd make your $$ back. But we shall see.
Rascacielo
Senior Member
Luxury aside, does it make sense to build new condos at all these days? With extremely high costs of construction, developers are forced to price units around $1,500/sqft (not even luxury units), while 3-5 year old similar units can be had for $900–1100/sqft.
Northern Light
Superstar
I'm not suggesting this one is headed to construction in the near term, in the current market. Merely that its unlikely to do so as a mid-range product.
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Tuscani01
Senior Member
One Roxborough has reached 60% sales, and secured financing despite the market. The luxury market is a different beast.
The biggest barrier here is the developer and whether or not they are serious about this project.
Rascacielo
Senior Member
I wasn't referring to this project specifically, but to all new condo projects. Also, I'm curious how the situation will play out in the future - are construction costs going to come down to the extent that pre-construction will be competitive again vs resale units? I suppose at some point there won't be enough supply of resale units and the excess demand will have to be absorbed by pre-construction.
Northern Light
Superstar
There is an absolute supply shortage, and population growth in the GTA will again exceed 3% this year, that means over 100,000 new residents in the City; they gotta live somewhere.
Resales only increase supply to the extent they were previously being held vacant.
Interest rates coming down will reopen the market to some degree....depending on how far down they go. That's not an absolute knowable, but I strongly suspect a further drop of 50 basis points (or more) by the end of Q4 '24.
Is that enough? Probably not............we're going to need to see some projects come back as rental..........
We may need to see some developers go the CCAA route (bankruptcy) in order to clear debts and take write downs on properties for which they overpaid.
Its likely government has some more intervening to do as well (rental incentives and direct building)
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In the end, I don't think there's any real question of the market coming back, its only a matter of how long (months vs years) and in what form. (rental vs ownership) and what kind of pain visits investors and highly leveraged developers between now and then.
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SaltnPepper
New Member
Agreed. Toronto's population is still growing like crazy. There is definitely a need for housing. In what form...