Quote:
Originally Posted by Summerville
Another factor is that most developers in the city have generally stuck to building apartments as opposed to condominium buildings. There isn’t enough of an incentive to build quality buildings that will entice someone to buy.
The only potential buyer for these types of building is a REIT or and insurance company that places greater weight on the efficiency of the building, units and overall potential to generate profit.
Hopefully, a result of the current demand on housing, will be a resumption of Halifax’s condo market. I’ve noticed that the resale of existing condos is following the same path has housing. Quick purchase for over-asking. And new condo developments are finally selling.
Developers of condo buildings will choose to build better looking buildings to attract purchasers.
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I think the taxation is a big limit to condos, I know that has been the case with family and friends who have considered selling their house. The taxes are proportional to value, plus you have condo fees.
Condos need a certain percentage pre-sales, where as right now apartments seem easy to finance. This is an added uncertainty for financing from the developer, especially if the condo market is soft as it historically is here.
I've always assumed there is better build quality in apartments as typically the developer manages them themselves, therefore better quality build results in lower operating expenses. I see condos as a way for a quick payout.