Economy 52,861 Posted October 4, 2019 Share Posted October 4, 2019 https://www.bnnbloomberg.ca/canada-s-housing-market-is-roaring-back-with-black-tie-condo-launches-1.1326505 A company planning to build a 62 story luxury condo building in Toronto where parking spots alone cost over $170,000 sold out nearly 3/4 of their units in just 2 weeks, most of the remaining 1/4 is already under negotiations for signed sale contracts it is customary for companies to try to sell contracts for months before financing is given and construction can begin and in some cases if not enough sell the project is cancelled and customers have to be refunded This incident shows just how severe the housing shortage is in Toronto. A client said after not being able to find a unit they had to go to go the pre-construction route, they went on the opening weekend and still had to make compromises on the unit they bought as all the unit options they prefered on the condo were already sold out Link to post Share on other sites More sharing options...
weed 78,964 Posted October 4, 2019 Share Posted October 4, 2019 $170,000 for a parking spot?!?!?!?! Link to post Share on other sites More sharing options...
Bolkins 4,152 Posted October 4, 2019 Share Posted October 4, 2019 Chances are that the buyers wont even live in them either, we have a similar issues in London where people buy up luxury apartments as investments with no intention of ever moving themselves/anyone in Not the bore worms! Link to post Share on other sites More sharing options...
Economy 52,861 Posted October 4, 2019 Author Share Posted October 4, 2019 31 minutes ago, Bolkins said: Chances are that the buyers wont even live in them either, we have a similar issues in London where people buy up luxury apartments as investments with no intention of ever moving themselves/anyone in I dont think so... vacancies are less than 1% in most parts of Toronto They imposed forein buyers taxes and raised land transfer taxes on your non-primary residence (to target people with realestate besides the one they live in) And because property taxes are so high in Toronto and rents are surging, investors are encouraged to rent them out if they but realestate as an investment with all the taxes involved in owning secondary real estate its not worth the investment if you dont at least rent it out Link to post Share on other sites More sharing options...
Edonis 28,974 Posted October 4, 2019 Share Posted October 4, 2019 Something needs to be done about this. I mean it's ridiculous that my BF had to be put on a waiting list for an apartment when he applied half a year in advanced just to end up losing it to an investor from China that paid $300,000 over the listing price. And it was in an older building. I feel like we're gonna have to look further out, which I personally don't want because I'm over commuting an hour plus to work. I already have to do that in Houston, so imagine having to do this in a city I'm in at least once a week every month. Sorry, rant over. It's just sooooo frustrating Link to post Share on other sites More sharing options...
GypsyVida 5,960 Posted October 4, 2019 Share Posted October 4, 2019 When I graduate from college I'd like to live in a big city (in or near the downtown) but with the ridiculous prices of condos in most North American cities, I would never be able to afford it. Meanwhile these multi-millionaires buy one or more in a tower and then never live in it. It's disgusting imo currently streaming Zombieboy Link to post Share on other sites More sharing options...
Fish 6,259 Posted October 4, 2019 Share Posted October 4, 2019 yup. the problem is there not enough housing, and not enough affordable housing. solution: build. more. affordable. housing. The liberals have started to address the issue by subsidizing and investing in affordable housing projects, but it is not enough. The cons, well, let's not even talk about that. Link to post Share on other sites More sharing options...
SMILE2NE1 3,566 Posted October 4, 2019 Share Posted October 4, 2019 Same thing was happening in Sydney until a year ago. Hopefully the demand will bring a massive upswing on new construction. Sydney apartments were hitting a massive boom, until it reached a point where supply outstripped demand. Whole apartment blocks where developers bought out the whole street didn't sell as expected. Think they are cutting immigration numbers too. Link to post Share on other sites More sharing options...
River 127,556 Posted October 4, 2019 Share Posted October 4, 2019 In Costa Rica there is the opposite effect, they are building too much, too many condos, it got to the point that the rents and the house for sale value is falling down too quickly, because the amount of people who can actually afford it is not so high, the average price for a house was $130,000 and rent is $800, which was still pretty high for a developing country with crazy taxes so now it's even lower than that.. I can find a bigger apartment for rent in a better place for the same price that I'm paying right now. So sploosh your juice all over me you Riverboy Link to post Share on other sites More sharing options...
Economy 52,861 Posted October 4, 2019 Author Share Posted October 4, 2019 1 hour ago, Fish said: yup. the problem is there not enough housing, and not enough affordable housing. solution: build. more. affordable. housing. The liberals have started to address the issue by subsidizing and investing in affordable housing projects, but it is not enough. The cons, well, let's not even talk about that. The conservatives wanna free up more land for affordable housing and also wanna reduce red tape on construction regulations that make our construction approval processes one of the slowest in the world. A condo building in Toronto from permit application to construction approval can take up to 10 years which is insane Both plans help ideally both the Liberals and Conservatives plan should be done cuz combined it would be more effective Link to post Share on other sites More sharing options...
StarstruckIllusion 53,565 Posted October 4, 2019 Share Posted October 4, 2019 Well. wow. Idek what to say. Maybe I should have sold my soul and gone into business or sumn idk Link to post Share on other sites More sharing options...
Economy 52,861 Posted October 4, 2019 Author Share Posted October 4, 2019 1 hour ago, SMILE2NE1 said: Same thing was happening in Sydney until a year ago. Hopefully the demand will bring a massive upswing on new construction. Sydney apartments were hitting a massive boom, until it reached a point where supply outstripped demand. Whole apartment blocks where developers bought out the whole street didn't sell as expected. Think they are cutting immigration numbers too. The demand has been here a long time but construction does not keep up with rapid population growth. you see cranes everywhere in Toronto for example and it looks like a lot of construction but for the fastest growing city in North America (125,000 people growth last year) its still insufficient. And Canada as a whole grew over 520,000 or 1.4% of population other times in history last century like during the baby boomers we saw surging demand like this but back then construction laws werent as complicated and didnt slow down construction so much i forget if its Sweden or Finland that has a simmilar issue. High prices and demand caused by a shortage, but construction still doesnt pick up enough because of complicated zoning laws and slow approval processes Link to post Share on other sites More sharing options...
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