Toronto condo projects teeter on collapse amid rising costs

As Toronto’s condo market booms, signs are emerging that a stressed industry is facing rising costs and tax burdens that may mean an even grimmer outlook for buyers.

Observers are still sifting through the wreckage of the Toronto area’s latest project cancellation – a sold-out Vaughan project that dumped 1,100 would-be buyers back into the market earlier this month. That collapse is by some counts the 11th residential building project to be cancelled in the last year, and some are pointing to a rapid escalation in builder costs as the primary culprit.

Read more at The Globe and Mail

Condo Cancellation Crisis: Toronto Realtor Steps Up to Help 1,100 Defenseless and Displaced Buyers

TORONTO, April 9, 2018 /CNW/ – As announced Friday, 1,100 condo buyers in Vaughan’s sold out Cosmos project are being left out in the cold after the project was cancelled suddenly, citing “an inability to secure satisfactory construction financing.”

“Sending a letter and releasing a brief statement through a publicist simply isn’t good enough for the blindsided families and investors that put their money and trust into this project,” said Toronto Real Estate Broker, Author, and University Instructor, Claude Boiron, of Royal LePage Terrequity Realty – Boiron Group. “We’re talking about 1,100 people who will now have to pay tens of thousands more for comparable properties, since market values have gone up considerably in the years since their investment in the cancelled project.”

Read more at Newswire

Condo construction starts hit new record in Toronto

The red-hot condominium market drove an increase in new home construction in Canada last month as starts of single detached houses continued to fall, new data shows.

Housing starts rose to 229,737 in February, a 7 per cent increase compared to the previous month, according to seasonally adjusted annual rates from the Canada Mortgage and Housing Corporation. Construction of condominiums and other dwellings containing multiple units jumped by 14 per cent nationwide, compared to a 7 per cent decline in single-detached houses.

Read more at Financial Post