[Mike in TO]

The issue at the end of the day is that the developer really isn't the one paying - all costs are passed onto the condo purchasers, which decreases affordability and contributes the gentrification of the city as fewer people can afford to live in the city core. And then we hear complaining in other threads (300 Front) that the developers are charging too much for the units.

Obviously the city should benefit financially from the development, but this story sounds like the city is adding unnecessary delays and trying to extract every last penny they can from one of the better developments we've had the last few years.

 

[ladyscraper]

The issue at the end of the day is that the developer really isn't the one paying - all costs are passed onto the condo purchasers, which decreases affordability and contributes the gentrification of the city as fewer people can afford to live in the city core. And then we hear complaining in other threads (300 Front) that the developers are charging too much for the units.

That is possible but I don't think so. It seems much more likely that no matter what the cost to build, market and bribe the city- the price would be set by whatever the market would pay. If the city didn't screw them like this, it probably wouldn't affect the price of a unit at all because the developer would still charge the absolute highest amount possible that they think people will pay.

 

[grey]

Grey's opinion

Sorry, I fixed my post.

 

[Mike in TO]

That is possible but I don't think so. It seems much more likely that no matter what the cost to build, market and bribe the city- the price would be set by whatever the market would pay. If the city didn't screw them like this, it probably wouldn't affect the price of a unit at all because the developer would still charge the absolute highest amount possible that they think people will pay.

Actually this statement is generally incorrect.

In many developments the objective is to sell the units as quickly as possible - the first ten weeks are key to reach certain objectives as once the splashy opening, pre-registrations, broker events and marketing buzz wears off, so does sales traffic. Realnet and most developers carefully track their absorption rates as do financial institutions. Projects that can't absorb a substantial number of units during the first ten weeks increase the risk and costs for the developer and can impact financing and project viability. Therefore keeping unit prices competitive and affordable in a key to success.

Developers actually generally want to charge less (unless it's a luxury product) to be affordable, to be competitive and appeal to a broader market and to keep sales moving. Every increase in the unit price immediately removes a chunk of the potential market. Banks have restrictive formulas and won't provide mortgage financing for purchasers at specific incomes as prices increase - every $1,000 price increase removes thousands of potential buyers from the pool.

About a third of the Toronto condo market is targeted at first-time home buyers (generally another 20%-30% is investors and the other third move-up buyers). As we all know condo prices have been on the increase the past few years which places an increased strain on this segment of the market - I'd suggest we've moved beyond "what the market can bear" for many first time buyers and this is contributing to a general decline in sales. It's also why you see many developers fighting tax increases as when affordability declines, so does the potential supply of purchasers who can no longer participate in the housing market.

 

[Edward]

Thanks for that perspective Mike. Makes sense.

 

[DaninToronto]

Thank you Northern Light. I have been confused about this project and now it makes sense what is actually before the city and what I thought was still before them aka the new revised downward proposal.

 

[Solaris]

Pure Spirits - Sept 25 2008

From Gardiner Westbound

 

[current]

September 29

Fresh and Wild opening soon on north side.

Fresh and Wild opening soon on south side.

Looking northwest.

Looking northeast.

 

[Edward Skira]

My 2 year old walks up these gangways every morning when I take her to the distillery day care. She loves it. Area looks great.

 

[Andrew3D]

Ed, I saw that today. I was in Bldg #5 for an interview. At first when I saw this I could hear kids laughing but couldn't tell where from. I thought maybe it was part of the art installation with speakers hidden somewhere. On my way back out I noticed they turned the studio I used to work in into a daycare. Sounds like your daughter and her schoolmates were having a great time.

 

[Edward Skira]

Oh they have a great time. The daycare is on the second floor in the building facing current's back in that picture.

 

[nekz]

My 2 year old walks up these gangways every morning when I take her to the distillery day care. She loves it. Area looks great.

What the heck is that? I live here and have never seen it!

 

[catcher_of_cats]

That is the public art component of this project, contributed I would think by the developer.

 

[Solaris]

my guess is these pieces are to mimic Lawn Chairs?

 

[Edward Skira]

What the heck is that? I live here and have never seen it!

I think it is, as catcher_of_cats says, the public art component for this project. Its been here maybe a month.