innsertnamehere
Superstar
might there be an oversaturation of the condo market in the entertainment district? or is Great Gulf just having troubles selling units for some reason, like they are at monde?
Toronto 357 King West | 148.13m | 42s | Great Gulf | BDP Quadrangle
- Thread starter grey
- Start date
urbandreamer
recession proof
taal, developers always try to presell (I mean to their core network of investors, via agents they work with) buildings months before the project even launches to f&f, VIP ppl etc. This project (amongst several others that have launched recently) was a failure. I think the market is saturated in this area. Condos are supposed to be about exclusiveness. When a dozen towers launch in an area in one year enough is enough. Investors are moving on to other areas.
taal
Senior Member
Our of curiosity what are the other areas they've moved on to ?
I know if I was an investor I'd seriously need to consider some of the 905. Downtown Markham, some of the new VCC condos ...
innsertnamehere
Superstar
maybe monde?? remember, there are no condos currently being marketed in Downtown Markham. (at least the part remington is doing)
kondoz
Active Member
haha. not exactly sold out. another example of an agent over hyping for sales
$watkins$
New Member
Isn't it better for the overall condo market that buildings like this don't get built? If all buildings are actually built that are planned to launch for the ED then there will be a big problem with oversupply. There's already too much.
cdr108
Senior Member
yes, and the units are getting too small for the money asked for.
pre-construction prices are a decade ahead of itself - at least 50% too $$$.
ThomasJ
Active Member
other (read: superior) areas that are still hot are basically Yonge Street. aka subway line aka top location not fringe a la entertainment district. Massey Tower killed it....as did Karma....as did....well that's about all that's launched. speaks to the exclusivity angle as well. also languishing at the moment is Freed's 60 colborne....which is another fringe location product.
bmiller
Active Member
The new Federal mortgage rules should dampen sales also.
Automation Gallery
Superstar
Yeah, i guess tough times are here for your average working stiff....but wont matter much for people with money.
Southcore
Active Member
Yup, INDX and Casa II sold well too. One outlier seems to be Eau Du Soleil. From what I've heard it is 40% sold but was launched only a short time ago, compared to something like Monde (also around 40% but a 'fringe location' as ThomasJ would say) which launched several months ago. And EDS is not downtown and is not cheap either ($650ish PSF).
There simply are too many projects in the ED right now at $650-$700 PSF for something like Tux to get any traction.
Ramako
Moderator
I can confirm that Massey Tower has sold very well... at least according the sale staff who claim (surprise) that it's already 75% sold out.
Mongo
Senior Member
Wow, they are claiming something other than the standard 70% sold. It seems that "70% sold" is the obligatory response from the sales staff of just about every project in sales.
metroTO
Active Member
There's nothing exclusive about new condos these days. 40+ stories, 500+ units, cookie cutter units, glass boxes with balconies...
The entire city is grossly oversaturated with these new massive condo developments in general.
I agree that these is a ton happening in the ED. In roughly a two block radius you have an insane amount of under construction and proposed highrise condos. This neighbourhood will become a dense forest of condo towers with units looking on to each other.
Tux was neither good or bad, IMO. The unit plans were not great and many of them lacked balconies which I'm sure didn't appeal to some buyers.
The entire city is grossly oversaturated with these new massive condo developments in general.
I agree that these is a ton happening in the ED. In roughly a two block radius you have an insane amount of under construction and proposed highrise condos. This neighbourhood will become a dense forest of condo towers with units looking on to each other.
Tux was neither good or bad, IMO. The unit plans were not great and many of them lacked balconies which I'm sure didn't appeal to some buyers.
pw20
Active Member
The economics don't make sense.
A 600 square foot condo sold at 700 a square foot is $420k. What 28 year-old who maybe makes 55k can afford 20% down, aka 80k? Which would mean they'd have to save 20k a year during their post-grad working years. MMMkkk.
(I realize there are are foreign buyers, but... my point is that the economic model of all of these towers appealing to first-time buyers doesn't make a lick of sense).
A 600 square foot condo sold at 700 a square foot is $420k. What 28 year-old who maybe makes 55k can afford 20% down, aka 80k? Which would mean they'd have to save 20k a year during their post-grad working years. MMMkkk.
(I realize there are are foreign buyers, but... my point is that the economic model of all of these towers appealing to first-time buyers doesn't make a lick of sense).