With many new condo developments springing up in Toronto, those on the hunt will have no trouble finding one that suits their personal needs. But there may soon be an additional incentive to act now.
City Hall is now considering a hike in the price of some building permits -- in some cases a doubling of prices per unit for developers. Those costs are expected to get passed onto buyers even in a slower market.
The move, with a vote likely coming up in July, would probably take effect next year. It would also take Toronto – now home to the lowest condo fees, as compared to other cities in the GTA region – and turn it into a market with some of the highest.
The bump-up would likely be out of whack with the financial realities facing Toronto compared to those other urban centres.
“There is more existing infrastructure in Toronto that can be leveraged for a new condo development, whereas a new subdivision in Vaughan or Richmond Hill will require a completely new network of sewers, and roads,” says Grant Goldfarb, owner and Broker of Record of Lifestyles Realty Source Inc.
“Despite the fact that condos remain the most affordable housing option in Toronto, increasing the price of units will affect buyer sentiment,” says Goldfarb.
In particular, “the larger units will experience the highest price jump in the cost of units and/or higher closing costs,” Goldfarb adds.