Quote:
Originally Posted by logan5
It's great that there is new housing product coming to market, but there needs to be a far better balance of housing produced that is not high rise condo. On a per sq foot basis, high rise units are much more expensive than ground oriented units because they require a lot of common area. The parkade is especially costly, with your parking spot alone costing $50 000 or more.
It's criminal that in a city with an affordability issue, land use policy is weighted so heavily towards expensive high rise developments.
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This isn't the place to debate the reasons why different sorts of unit cost more or less, but I don't think you're correct that high rise are necessarily more per square foot. New ground oriented townhouses in the same area as this also cost around $1,000 per square foot - more for new developments. Yes, with a tower you're paying for the common areas, underground parking and amenities, but the cost per unit for the land is a lot less, so overall there's not much difference on a pro-forma. The concrete construction costs more than woodframe, but it's not as robust, so there's something of a trade-off there, too. This area has a lot of zoning for mid-rise condos, and townhouses (as is frequently bemoaned by some posters), high rise is the exception.
The reason the prices are so high for towers is that up to now buyers have been willing to pay the price asked. What buyers paid for previous projects sets the base for the next one, and most developers will see if they can get a bit more on each subsequent project. The real estate threads have seen discussions about what it would take to 'reset' the market to a much lower level. While there was a bit of a drop in the resale market, it wasn't as obvious in the newly developed market. Developers just build less if they can't get enough sales at the price point they have calculated. The scarcity of new product then keeps prices higher. To get them to drop would need a longer period of recession, With recent events and the state of the economy maybe that's on the way, and we'll see if, and how it affects prices, or whether it just means less gets built.