Quote:
Originally Posted by Changing City
The post I was replying to was referencing resale condo prices, not rental building values.
I'm not sure if you're suggesting that no rental developments are proceeding in the City of Vancouver because buildings that get developed will be worth less than they've cost to build. So far this year the CMHC data for rental housing starts in the city (2,056 units to May) are more than the 1,914 to May 2024 or the 1,721 in the first 5 months of 2023.
Maybe rental projects won't be viable at some point in the future, but so far that doesn't seem to be the case, and developers are continuing to submit more rezonings and development permits for rental buildings. That's not the case for condo towers, but we're in a thread about a rental building that's just completing, in the Broadway Plan area where almost every development has been proposed as a rental tower rather than as strata units.
|
I read the post you quoted as referring to general costs from purchase through construction costing $1,500 PSF (which I think is high), regardless of it being condo or rental. The same premise applies to both though in that not many projects, if any, will proceed if they stand to cost more to deliver than they'll be worth on completion. At the moment, rental buildings are not worth more than their cost to complete. Those projects that are currently under way will go forward but a significant amount of projects that have been submitted for rezoning and development permits won't be built any time soon as the economics don't work. Any one that is holding that land would be foolish not to try and increase the value of their property by getting rezoning and development approvals as it will either help with selling the land, or when the time is right it will allow them to start development.
Threaded Mode