Toronto Forma | 308m | 84s | Great Gulf | Gehry Partners

[travis3000]

Unknown, and I doubt if Great Gulf knows either. They'll probably try to market it as the first tower is completed so they can use that excitement to sell higher-priced units in the taller tower.

They're going to be looking for hundreds of people willing to pay ~$2500/sqft. The high-end market is still active but few customers with those funds want a 10th floor unit with zero view.

By the time they start marketing the 2nd tower I imagine it'll be 2026, when you can get a 5 year fixed rate for 3.49% , should help affordability and IMO condo sales should start rebounding around this time. Also, these towers are iconic so I imagine they will sell better than most.

 

[paperman]

My opinion is that tower 2 will likely never get built. High interest rates have destroyed the concept of condo investing. Tens of thousands of units were purchased in 2021 and 2022 at far inflated prices far above resale and there are now billions of dollars in unrealized losses. New condos closing today are looking at very high monthly cash outflows. The resale condo market is weak with inventory ballooning and prices low as investors try to liquidate. The concept of price appreciation is over in the minds of investors. Nothing is selling in preconstruction condos, with sales at 25+ years lows. Yes interest rates will come down, but they will reach more neutral levels, not the near zero rates that funded all these condos.

To build Forma tower 2 will take prices above $2000 per foot, and no investor will be willing to fund that. The days of cheap interest rates is over and investors no longer believe large price appreciation is ahead. They are not paying large premiums over resale ever again. The supply of the future is going to have to be competitively priced, shorter, easy to build buildings. Not extremely expensive supertall vanity projects like this.