Builders in the GTA are purchasing land at a high cost and this justifies the average $500 psf price that they are charging.
So unless there are incentives or discount on purchasing land in the GTA, we will see another great 10 years for the condo market!!!!!!
and how much is the land cost?
from what i've read, it's around $500 psf of land for dt core ... not buildable gross square footage, but just land area.
the majority of dt core projects are building 40s-70s high, at about 30x-50x land area.
so if land cost of $500 psf is divided by gross buildable square footage of 30-50x, that's only $10-17 psf ...
let's round up abit to take into consideration of common areas, etc to $12-20 per sqft.
construction costs should have gone down in the past 2 years since the global recession,
and considering the advantage and buying power of Canadian developers, they should be getting a discount as no one else is really building in North America.
there's probably more spent on the marketing with realtor VIP parties and glossy brochure advertising, flashy presentation centres, etc than the actual land costs.
borrowing costs are also at historical ultra lows for consumers, one would surmise that to be similar for developers compared to the 1980's when interest rates were in the high 10+%.
so unless a realtor / developer / etc is willing to provide/disclose some valuations beside the usual PR speech about high land costs, then it's pure BS.
PLEASE ENLIGHTEN US WITH FIGURES ... not conjecture.
what are construction costs?
what are marketing costs?
what R/E commissions are paid out?
what are the interest paid for a project?
