We’ve seen 270 sq ft studios, 395 sq ft 1 bedrooms , 580 sq ft 2 bedrooms, and 859 sq ft 3 bedrooms. All of these units would have been considered asinine and unsaleable as recently as 2006, but now they are in just about every building south of Dundas.

One big question many buyers are asking is: where am I supposed to put all my stuff? Storage lockers are more important than ever for storage, however, I am finding lately that they are becoming harder and harder to get. It used to be that developers would finalize parking spaces and locker spaces before they ever went to market, and buyers would be able to buy both at the time they signed their agreement for their unit. Now, locker spaces and parking garage areas are often still in the ‘design stage’ when projects go to market and developers don’t have exact numbers of how many they will be able to sell, so they don’t sell them in the initial launch stages. When they do become available to buy, there is often a shortage and only certain units can actually buy lockers.

Why is this happening? Two key reasons in my opinion:

1. Developers are usually in a rush to get their projects to market and investors don’t usually care about parking or lockers
2. Developers seem to be sacrificing locker space and parking space in order to maximize the number of units they can put in a building (maximize profits) as well as minimize the construction of underground levels (minimize costs)

I’m all for minimalistic living, but 400 sq ft and no locker is pushing it! I’m concerned some of these buildings will not be all the ‘liveable’ when completed. One building that launched recently is said to only have 10 lockers for around 200 units! Quick investment idea: buy a condo, gut it and split it up into storage lockers and rent them out to people in the buildings where lockers are at a premium!

Questions or comments? Please contact me.

Feb 18 update: NEW RELEASE OF SUITES COMING THIS WEEKEND. 1 bedrooms will be available under $300k. Contact me for details.

Coming soon from Urban Capital, Malibu Investments, and Alit Developments: Tableau Condos.

The early word that I am hearing on this project is that it will be “very well priced”. Quite frankly, they will have to be well priced in order to stand out in what is becoming an increasingly crowded sub-market. Several large scale projects have recently launched in the area including Bisha, The Mercer (formerly 8 Mercer), and Pinnacle on Adelaide. Several more are in the immediate pipeline including Tableau, Studio, and Cinema Tower.

This is the true entertainment district. Love it or hate it, you can’t argue that this is A1 Toronto real estate. Much ink has been spilled lately with people prognosticating about the current and future of the district, but it is clear that if you add several thousand medium-to-high end condo units in such a small area, the area will change dramatically.

Prices are supposed to start at ~$540 per square foot and 80% of the suites will be priced under $400K. I suspect that the highest floors will fetch something in the $650 PSF range, but we’ll have to wait and see what they come out with. If they can keep the high floors around the $600PSF mark, and if the floor plans make sense, this one could be a very good buy for investment.

For more information on Tableau, please contact me. Sales are starting this month.

• A residential community envisioned around a table and designed to preserve the 20th century context of the original warehouse
  building at 117 Peter St.
• Located in South SoHo at the corner of Peter St. and Richmond St.
• An original collaboration of developers, architects, interior designers, landscape architects and artists to transform this
  corner of the neighbourhood.

Ceiling height approximately 9 feet. Solid 4” squared edge baseboard. Terrawood® flooring or equivalent laminate flooring except for tiled areas, as per plan. Granite kitchen counter top. European-style kitchen cabinetry. Stainless steel appliances package including self-cleaning electric oven, microwave hood fan vented to exterior, built in dishwasher and frost-free refrigerator. White stacked washer/dryer. Solid surface counter with integrated sink on bathroom vanity cabinetry, ceramic tile flooring. White acrylic soaker tub. Full-width mirror over vanity. Single-lever faucets for vanities.

• “Some See Condo Prices At Bottom” from today’s Globe and Mail. 

The article suggests that condo prices have fallen to their lowest point, even though the confidence of buyers is still falling. If you think this idea is silly, you’re right. As readers of this blog will no doubt know, prices of downtown condos have only just begun to fall in the past 60 days or so (in the resale market). To say that prices will not get any lower is pretty optimistic. Brad Lamb is quoted as saying that days on the market (DOM) of anything less than 90 should be considered a seller’s market. Try telling someone who has had their condo on the market for the past 90 days that it is a seller’s market. Back in May 2008, Lamb was quoted as saying that 60 days should be considered a seller’s market. Now it is 90. What’s next? Time to face the facts: it is a buyer’s market.

• “Toronto’s development industry has tanked, councillor laments“, from Wednesday’s National Post. 

Councillor Adam Vaughn gives a startling anecdote that speaks to the reality of the market right now: he says that he has not received an application for new development in the past 6 months, whereas for the previous 18 months before that he was receiving on average 5 per week. Wow. 

• “Help is Far From Home” from Torontoist, published yesterday.

This is a commentary on the announcement that Home Depot is pulling out of their lease agreement with RioCan and Tribute Homes condo development in Queen West. The announcement invites speculation as to the real reason why Home Depot is pulling out. Is it just because of the economy? Is there something wrong with the site or the location? Is this a signal that the project will be canceled? 

What do you think about these articles? Leave a comment or contact me anytime.

If you are looking for a condo on the east side of downtown, The Modern on Richmond is offering a great promotion right now – 5% deposit & $10,000 price discount. Before I provide the details, please read this caveat on 5% deposit programs and contact me if you would like more information.

Beware of 5% deposit programs at new developments. Usually they are so full of stipulations and conditions that they are not worthwhile for most buyers. If you do see a project that you are interested in buying into offering a 5% deposit program, always ask yourself this question:

If every other builder in town is requiring 15-20% deposit, how can this one be asking for only 5%?

There is usually a ‘catch’. Most of them are not really 5% deposits. They often fall under these two scenarios:

1. Put 5% down up front, then get a line of credit (must qualify for it) through the developer’s lender of choice for the additional 10%. Then you pay interest only on the 10% from now until final closing (2-4 years later). You have to then determine who is going to pay off the line of credit and when? Sometimes the developer will pay it off at final closing, sometimes not. It gets complicated. Make sure you understand all the terms before entering into this type of scenario.
2. Put 5% down up front, then pay out the remaining 5-10% slowly over time in increments or you must pay an additional 5-10% at occupancy. 

In either case, it’s not really a 5% deposit, but these are options that sometimes work for some buyers. 

Refreshingly, the promotion that the Modern is currently running from now until the end of this month is not one of these 5% programs with conditions attached. As far as I can tell, this is a TRUE 5% deposit program. The program is being offered on all suites, and you do not have to be a first time buyer to qualify. $2000 is due at the time of signing, the balance of 2.5% is due in 30 days, and an additional 2.5% is due in 60 days. No additional deposit is required at occupancy. The only ‘condition’ is that the buyer has to qualify for standard CMHC insurance (which is required on the purchase of any real estate with less than 20% down).

Prices at The Modern in the low to mid $400s per square foot. See the price sheet below for details and for floor plans visit the developer’s site.

If you are interested in purchasing a unit at The Modern, or if you would like more information, please contact me.

Links:

• The Modern on Richmond official website
• Current Price List for The Modern on Richmond

Thinking of buying a new condo directly from a builder? Read this first.

They just released their sales statistics for new homes and condos sold in November. For Toronto, 789 high rise condos were sold. At first glance this number sounds pretty high, but when you hear that in November of 2007 1922 new condos were sold in Toronto, this means that sales this November were down 59% versus last November. This is very consistent with the numbers for November’s resale market, where downtown west condo sales were down 61% and downtown east 51%.

We have surpassed the 15,000 mark for condos sold in the GTA for 2008 so far. We will likely end up with about 15,500 condos sold in 2008, which is far off of 2007′s record pace of 22,000, but pretty much dead-on with previous predictions from new development tracking company, Urbanation, who was calling for around 16,000.

Click here for the full press release, or continue reading.

TORONTO, Dec. 22 /CNW/ - There were 1,638 new homes and condos sold in
the Greater Toronto Area in November, Michael Moldenhauer, President of the
Building Industry & Land Development Association (BILD) said today.
    Moldenhauer noted that November sales were down appreciably from the
heady days of 2007 prior to the onset of the global financial turmoil yet
remarkably resilient in that context. "The fact that more than 1,600 new
homebuyers signed on the dotted line despite all the distracting factors in
November represents a very encouraging vote of confidence in the GTA new home
market," he said.
    Moldenhauer projected that new home sales would end the year at around
28,500 total sales, down approximately 35 per cent compared with 2007, which
he described as a "reasonably solid performance given the circumstances
prevalent throughout much of the final third of the year."
    Mr. Moldenhauer pointed out that growth in high-rise unit sales has
continued throughout 2009 with 55 per cent of the market now captured by this
product type. "The continued growth of high-rise sales is reflective of higher
order provincial policy on intensification combined with the relative
affordability of the product type," Moldenhauer concluded.

    <<
    -------------------------------------------------------------------------
              Low Rise             High Rise               Total
     November
    ---------------------    %     ------------    %    -------------    %
                          Change                Change                Change
    Region   2007   2008           2007   2008           2007   2008
    -------------------------------------------------------------------------
    Durham    223    139  -37.7%     12     10  -16.7%    235    149  -36.6%
    -------------------------------------------------------------------------
    Halton    291     91  -68.7%     32     22  -31.3%    323    113  -65.0%
    -------------------------------------------------------------------------
    Peel      311    287   -7.7%     86     16  -81.4%    397    303  -23.7%
    -------------------------------------------------------------------------
    Toronto    88     35  -60.2%  1,922    789  -58.9%  2,010    824  -59.0%
    -------------------------------------------------------------------------
    York      682    121  -82.3%    227    128  -43.6%    909    249  -72.6%
    -------------------------------------------------------------------------
    GTA     1,595    673  -57.8%  2,279    965  -57.7%  3,874  1,638  -57.7%
    -------------------------------------------------------------------------
    Jan to
     Nov   20,442 12,442  -39.1% 22,015 15,053  -31.6% 42,547 27,495  -35.4%
    -------------------------------------------------------------------------

Bauhaus Condos at King and Sherbourne. VIP sales are happening now. Suites starting from the low $200s. Modern architectural tower integrated into historical 19th century building in the heart of the Design District / Furniture District, and steps to the St Lawrence Market.  Contact me for your chance to purchase a suite before the launch to the general public.

For more information on Bauhaus, including floor plans, current availability, and pricing, please contact me.

Thinking of buying a new condo directly from a builder? Read this first.

From the developer’s marketing materials:

Building Features

18 storey luxury building with 147 suites rising out of a stunning re-constructed 3 storey Heritage building, Architectural design by award winning Prish Jain of TACT Design Inc, Interior design by award winning Mike Niven Interior Design Inc, Dramatic floor to ceiling double glazed windows, Automated vehicle lift to parking garage, Private rooftop patios for Penthouse suites*, Gas line connection for BBQ optional on select suites***, Fully secured access with Executive Concierge, Parking and storage lockers available* ***, Visitor bicycle parking, All new construction protected under the Tarion Warranty Corporation, Private residents lounge with fully integrated fireplace, Designer decorated hotel-style guest suite, Executive style meeting room

Suite Features

9’ ceilings in principal rooms (8’ ceilings on floors 5,6,8 and 9)*, Smooth finish white painted ceilings and columns, Solid core entry door with chrome hardware and security viewer, Elegant pre-engineered hardwood flooring throughout suite**, Custom designed contemporary style flat slab or glass doors or sliders*, Contemporary profile painted wood baseboards, Choice of designer series paint**, Ceiling light outlet in dining room

Green Building Features

Suites individually metered for energy consumption, LEED® registered building, Multi-sorter recyclable waste system, Low maintenance Green Roof, Master on-off switch conveniently located near entry door in all suites, Motion controlled lights in all stairwells, Low VOC paints, Dual flush toilets, Low flow faucets and showerheads, Energy Star® washer and dryer, Fully integrated whisper quiet dishwasher with delay start green feature, Environmentally friendly flooring (carpet, hardwood, tile), High efficiency, low emission thermal double glazed windows, Auto share program located in the building, Visitor bicycle parking, Individual bicycle parking, Timer and photo cell on all exterior lighting, Compact florescent light bulbs in all suites and common areas, High efficiency hot water gas boiler system, Environmentally friendly high quality clay brick for exterior, Parking exhaust controlled by CO and NO monitors, Exceeds City of Toronto GREEN building standards, In suite heat pump units allowing for independent control of heating and/or cooling year-round.

Deposit Structure: 

• $2000 with offer, Balance of 5% in 30 days, 5% in 90 days, 5% in 180 days, 5% at occupancy

Parking:  $30,000 (select suites only) 

Lockers:  $3,500

Occupancy: December 2011

Maintenance Fees: $0.49 per square foot + Hydro

Taxes: Estimated at 1% of the purchase price

The Verve By Tridel: It’s here and it’s beautiful.

Standing tall above Wellesley Street, between Jarvis and Sherbourne, The Verve is a big part of the ongoing transformation that is taking place on the downtown’s east side. If you haven’t been to Toronto in a while, or you haven’t been east of Yonge street in the past few years, I encourage you to come and see everything that is taking place here. As I’ve been saying for years: The East Side is the New West Side!

The Verve is a brand new building that has just registered. The occupancy period is now over and owners now officially own their units which means they are free to sell them at will. This is a great time for buyers to get a brand new condo without the usual 3-4 year wait, while also a great time for owners in the building to capitalize on the appreciation of their investment and sell.

If you are a buyer or renter interested in The Verve, please contact me for the latest list of all available units in the building.

If you are a unit owner at The Verve and you are thinking about selling or leasing our your unit, please contact me for a market evaluation and to discuss your options.

Links:

• Official Developer’s site

Attention Verve Owners:

I am now offering a FREE, no obligation service, called ‘Track Your Investment’.

Track your investment and see how much your unit has appreciated since you bought it by receiving new listings from The Verve by email as soon as they hit the market. Learn exactly how much your neighbour’s unit sold for!

This is a 100% free service with absolutely no obligation that I am offering to all unit owners at The Verve or anyone interested in learning more about current market values in the building. Contact me if interested.

Coming soon to the entertainment district from Cresford, Lofts 399.

This project is on the site of the project previously marketed as “Mode Lofts”. Cresford canceled this project last year after selling some of the units over a dispute with the city over density that apparently could not be resolved.

The project is being resurrected as Lofts 399 and floor plans are now up on Cresford’s official site. The name is derived from the address which will be 399 Adelaide in the heart of the Fashion/Entertainment districts.

Sales have not started to the broker community or anyone officially yet, but if you are interested in Lofts 399, please contact me because I have an exclusive opportunity to sell units to my clients at substantial discounts from what prices will be when they launch to the broker community later this winter.

Keep checking back here for updates on this project.

Links:

Cresford’s official website (includes floor plans).

Thinking of buying a new condo directly from a builder? Read this first.