Here’s yet another reason why Toronto real estate prices are going to keep going up
Read the original article here:
Speaker 1: Here’s an interesting article in Urban Toronto. It’s going over a recent proposal from Allied. Allied submits plan to float office space over Heritage Buildings. In the … around the King and Spadina area, Allied is proposing to build this commercial office building essentially on top of an existing older, former warehouse type of historic building, which is very common in the area.
The point I want to make to you here is as condo investors is to understand that this is another step in the development of our city. This is another reason, sort of a symptom of, the problem that we have in Toronto, which is we’re running out of land to develop. All the low hanging fruit is gone. There’s no more parking lots. Hardly any parking lots anywhere in Toronto versus twenty years ago, half the downtown was just parking lot space. This is the maturation of the city that we’re seeing right before us, this is another reason why real estate prices are so high and why they’re going to continue to go up even more especially in the downtown core because this type of building, obviously, is much more expensive to build on top of other buildings as opposed to building … you know, just having a piece of dirt and being able to dig down and build directly there.
This is a much more expensive way to build a city but, this is the future and we’re gonna see more and more of this happening and the fact that it makes economic sense for them to look at opportunities like this, to build on top of other buildings. There’s been many proposals that have come out in the downtown core like this in the past year, speaks a lot to, again, the development of the city of Toronto, the maturation of the city and also, it tells you the direction of where things are going.
Things are going to continue to grow, prices are going to continue to grow. Rents are going to continue to grow both in the residential and the commercial side. These are very expensive buildings, somebody has to pay for them once they’re done. These are major, major companies with billions of dollars behind them, investor dollars behind them, who are making these proposals. So, it’s all good news for condo investors who are looking to add and to build to their portfolio in the downtown core.