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JORDAN YEE
NewBee
reply 1
 

Condos struggling to sell

Hey guys,

I've just been wondering if you've noticed any projects (condos) that have really been struggling to sell out in the Toronto area, and if there are any particular reasons why. I know there's definitely been an increase in supply in the condo market over the last little while, so I am just curious as to whose had a hard time competing.
9
Canada / New Developments
 
 
 
NICHOLAS GAVEY
Buzzer
reply 60 vote 11
 
 
Absolutely! Context King West JUST confirmed the project is on hold and there are rumors surrounding a number of other DT projects. I think the market might see a slight slow down in the number of developments being launch in the next 6 months to a year but the market will eat up the inventory we have coming quickly and we'll be back to a supply issue that we had years ago that created this whole condo boom....agree or disagree?
 
 
ALLEN
Buzzer
reply 129 vote 34
 
 
Context King West is on hold due to some land title issues, not because of poor sales. It is a well thought out and designed project that's backed by a very reputable developer and priced fairly, so it should perform just as well (if not better) than the other projects in the hot King West and Entertainment District.

Some of the condos in the ultra-highend of the market are struggling a bit, such as Trump Tower and the Ritz-Carlton, but that's because of many factors. Unprecidented over-ambitious pricing, lack of balcony space, high maintenance fees, harder to get financing because it is considered a commercial/hotel property, location not traditionally prestigious, etc.

Concord Cityplace typically has quite a bit of unsold inventory after the building has been completed, but those buildings have a lot of units in them and Concord has the resources to build their condos much faster than they could sell them.

Other than some high profile mega developments, I think our hot market will slow down, especially when price per sq.ft. has gone up to a point that most could not afford to buy, and condo units have gotten way too small or impractically designed (2 BR units in less than 700 sq.ft.).
 
 
MARCO DIFOTI
BabbleBee
reply 476 vote 12
 
 
It is also interesting to note that some of the "mega projects" (INDX and Massey) ate up a lot of the market in the beginning of the year, making it harder for newer launches.
I am not concerned and still strong on the market.
 
 
MICHAEL WINESTONE
Buzzer
reply 52 vote 3
 
 
allen said:
Other than some high profile mega developments, I think our hot market will slow down, especially when price per sq.ft. has gone up to a point that most could not afford to buy, and condo units have gotten way too small or impractically designed (2 BR units in less than 700 sq.ft.).


This is partially what I've been saying all along. Builders are not building for the people anymore, they are building for profits alone. Most families I know are not looking to purchase under 850sqft (and more likely under 700sqft to be affordable) and it's just not making sense.
We need to go back to the 1990's where units were built with an average of 1200sqft and nice open split designs, but we all know thats not gonna happen. :)
Mike
 
 
MARCO DIFOTI
BabbleBee
reply 476 vote 12
 
 
@Michael, that is true. Larger units = good long term play.
 
 
MATTHEW SLUTSKY
BuzzStaff
reply 1969 vote 68
 
 
This is really a wild and crazy market. Rumours that the market is slowing on condos, yet there is currently a huge lineup for PSV2 in Mississauga.... http://www.buzzbuzzhome.com/psv2-condos-at-parkside-village
 
 
NICHOLAS GAVEY
Buzzer
reply 60 vote 11
 
 
I think if we want better layouts then we need to stop buying the bad ones that some builders produce. Who bought the units at Massey Tower where the bedroom is only 8'7 deep? Good luck getting your bed in there.
 
 
ALLEN
Buzzer
reply 129 vote 34
 
 
Investors are the ones buying these small crappy units in bulk.
It doesn't help that the furniture shown in these floor plans are often undersized or impractically arranged.

Double/full beds will be more commonplace (King beds will be extinct), dining tables will be a rarity (good luck trying to host a party or dinner in your own home), and if your girlfriend wants to move it with you she better own just a few pairs of shoes!
 
 
NICHOLAS GAVEY
Buzzer
reply 60 vote 11
 
 
That's why I always tell people to dissect the floorplans and look at measurements not furniture placement.
 
 
 
 
 

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