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TheKingEast

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Because developers know people are stupid enough to pay these absurd prices.

Monkey sees condo. Monkey buys condo.
This building isn’t being built for the people of Toronto. It is being built for rich overseas investors. They’re not even hiding it. All this does is raise the prices in the area. We will see how this sells.
 

innsertnamehere

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I don't know about that, it sits smack in Hospital Row, where a lot of that staff is looking to live nearby
How do you propose a nurse affords a $1 million 1 bed suite? These prices are ridiculous by any standard - miles away from where the market is right now. You can buy good sized 3 bedroom suites a 10-15 minute transit ride away for that price - who's paying that kind of premium?
 

BrianPersaud

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Why is this so much more expensive than the surrounding area? Even the Shangri-La, a luxury condo down the street with resale is asking $1250 per sq ft, why is this $1600+?
6-7 year build out,
complicated project,
488 university assignments trading high
average resale trading high in the area
 

innsertnamehere

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From what I can tell stuff in the area newish resale units are selling around $950/sf right now.. I understand this will probably be a bit higher end, but 70% more seems excessive. Even compared to other projects with relatively shorter delivery timelines, the prices are absurd. Its like a $500/sf premium over everything else, for what, 2 years of extra delivery time? This is selling at a similar level to what The One is at Yonge and Bloor. Do people really expect to be able to get $3,000 for a freakin studio apartment in rent in 7 years? That's what you'd need to finance these prices..
 

Chopper1953

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the premium for new construction is back to those peak levels of 2011 -- the downtown resale market is around $1000 psf and these new construction buildings are asking 50-60% premiums == the price sheets I've seen for this is $1500-$1700 psf
 

TheKingEast

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From what I can tell stuff in the area newish resale units are selling around $950/sf right now.. I understand this will probably be a bit higher end, but 70% more seems excessive. Even compared to other projects with relatively shorter delivery timelines, the prices are absurd. Its like a $500/sf premium over everything else, for what, 2 years of extra delivery time? This is selling at a similar level to what The One is at Yonge and Bloor. Do people really expect to be able to get $3,000 for a freakin studio apartment in rent in 7 years? That's what you'd need to finance these prices..
This isn't for people like us. This is for people with big time money where $500K is a drop in the bucket. They are banking on the value increasing long term. This isn't for the small time investor. Most of the units are probably sold to people who have never stepped foot in Toronto.
 

Ric

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That 279sq.ft Bachelor would have to rent for $2600/month to break even. Are people that stupid or just want to launder money?
 

innsertnamehere

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That 279sq.ft Bachelor would have to rent for $2600/month to break even. Are people that stupid or just want to launder money?
That's conservative. That's just covering the mortgage - you need to cover maintenance fees too, which will be a bit more than that. Break even on the 457 square foot 1 bed unit would be $4500 a month - over double current rents. You'd have to assume average rent increases of 15% annually for the next 7 years.. I'm not going to make that bet.
 

innsertnamehere

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They wanted higher floor to floor heights for better units.

*Massive eye roll*
Their height dropped by 6m though too though? That seems to pretty much account for the loss of 2 floors.

Also, a lot of floors have 2.75m slab to slab heights.. the ceilings aren't exactly high.

I do like that new parking ratio, 97 residential spaces for 713 units. 0.13/unit. Very nice.

I just generally still do not understand this project and why it's apparently worth $1,500/ft. The whole thing just makes no sense to me. they must have some sort of incredible broker network that can push these units.
 
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