K Shaped Condo Curve. PSF $500

condodweller1 wrote: ↑ I've been analyzing the condo market, even potentially dipping my toes into buying one.
Have been recently talking to some insiders in various dev companies, and there's whispers mentioning there's a K shaped curve between detached, semis and townhouses and condos.

One even mentioned they wouldn't be surprised if condos hit $500 psf.
So for a 1000 square foot condo (a box in the sky), it would be $500,000 which would be a reasonable valuation.

Curious to see what happens in 2021! This temporary blip increase in prices is too small of a statistical signifiance to actually determine market trends.

kangarooz wrote: ↑Lol at these comments RIP OP.

sircheersa wrote: ↑ Development fees and taxes alone are $100k per unit. Then add in land, materials, labour, financing. There is a lower limit to what they can be built for.

JayLove06 wrote: ↑At least think it through. Builders will not build for 500/ft. Will wages go down along with cost of materials as well? Taxes too? Insurance? None of it makes any sense. Builders build for profit, not charity.

ricodeals wrote: ↑
Do you have any sources on this? this might be the case now but not 5 years ago when most buildings that finished had precon pricings in the 300's range

sircheersa wrote: ↑ It's actually $121k on average, $186k for houses lol

https://www.bnnbloomberg.ca/government- ... -1.1069051

JayLove06 wrote: ↑ At least think it through. Builders will not build for 500/ft. Will wages go down along with cost of materials as well? Taxes too? Insurance? None of it makes any sense. Builders build for profit, not charity.

ricodeals wrote: ↑ Looking at the report, things like ltt are included and cmhc insurance because they assume only 15% down payment, only significant fees the builder would pay is the development charge, which has risen in toronto to 80k a unit in Nov 2020, was half of that before.
Lame excuse to blame condo pricing to be high because of government charges, prices are high because builders think they can sell it at that price, government charges are so little its a drop in a bucket.

condodweller1 wrote: ↑ I've been analyzing the condo market, even potentially dipping my toes into buying one.
Have been recently talking to some insiders in various dev companies, and there's whispers mentioning there's a K shaped curve between detached, semis and townhouses and condos.

One even mentioned they wouldn't be surprised if condos hit $500 psf.
So for a 1000 square foot condo (a box in the sky), it would be $500,000 which would be a reasonable valuation.

Curious to see what happens in 2021! This temporary blip increase in prices is too small of a statistical signifiance to actually determine market trends.

sircheersa wrote: ↑ $80k per unit is a drop in the bucket? That's just one expense that went up. Labour cost is up, raw material is up, land value is up. Not like they are pulling in 30-40% margins.

JayLove06 wrote: ↑ At least think it through. Builders will not build for 500/ft. Will wages go down along with cost of materials as well? Taxes too? Insurance? None of it makes any sense. Builders build for profit, not charity.

ricodeals wrote: ↑ Looking at the report, things like ltt are included and cmhc insurance because they assume only 15% down payment, only significant fees the builder would pay is the development charge, which has risen in toronto to 80k a unit in Nov 2020, was half of that before.
Lame excuse to blame condo pricing to be high because of government charges, prices are high because builders think they can sell it at that price, government charges are so little its a drop in a bucket.