Toronto Q Tower | 197.4m | 59s | Lifetime | Wallman

I walked past here again this morning and did a walk around the entire lot this time, snapping some shots...

20251122_113820.jpg


20251122_113824.jpg


20251122_113915.jpg


20251122_114119.jpg


20251122_114124.jpg


20251122_113852.jpg
 
Hey PE, curious, why would a developer pump more money into a project when the market is so bad? And without converting to rental. What's their thinking here?
 
Undead said:
Hey PE, curious, why would a developer pump more money into a project when the market is so bad? And without converting to rental. What's their thinking here?
Click to expand...
They pull DM, CM and SM fees so as long as it's moving forward (regardless of sales numbers), Lifetime gets paid. Also, it's not Lifetime themselves putting in the equity, it's part of their capital stack (other new investors, more money from existing investors, etc.).
 
centralblue said:
Just saw a instagram advertisment for the tower offering 0% until 2035 on their 1 bedroom city view units. View attachment 711258
Click to expand...
lol if I recall the pricing was like 800k for a 1bed.
this means theyre giving up to 150k back. anything but lowering the price LOL
Id been questioning how this is going to be built at that price
 
Undead said:
Hey PE, curious, why would a developer pump more money into a project when the market is so bad? And without converting to rental. What's their thinking here?
Click to expand...

The anticipated completion is 2029, and we all know nothing is ever on schedule. The market will be much different than what is now. The real estate market cycles in waves, because of the current slowdown in the market and the pausing and cancellation of many projects will have an effect later on, resulting in shortages and price fluctuations.
While buyers and investors in developments which have recently completed or soon to be will be will be put into a challenging situation due to the over saturation of typical condo units, especially those who bought in the last few years at the height of the market and bought units that are questionable (poor layouts, views, quality and features, etc.), and the bank’s tightening of financing approvals, the market will eventually recover and we will see higher demand and prices. Hopefully by then (or even now) developers will make units more livable and not simply appeal to investors, as I’ve seen investors snapping up whatever units they can get a hold of without any thought or care at these hyped condo launches during the boom, and now they are paying for it.

This building has been selling at $1,500 to over $1,700/sq.ft which may seem very high as this is not a luxury building and rather standard, but by the time it’s completed it would would fall somewhere in line with future values. A decent number units have been sold at launch, and the developer would not drop the price which will hurt existing buyers and set a lower baseline for their pricing. Instead they are relying on offering incentives to help sales. Turning this building into rentals is not an option due to its size and the sales they already have, and will be a bad PR move. They will also be losing their capital which will affect the financing of their construction which has already been commenced. This is true with other larger condo developments.
 
You must log in or register to post here.

Back
Top