Recalibration of the Condo Market

Networking with a few builders and financiers this week some interesting stories came out.


1. Land is expensive and scarce. Most developers are not willing to speculate that if they buy the land at a high price they will generate enough revenue with a high price unit.

2. It's still tough to get construction financing and land financing on projects.

3. Most of the smaller and inexperience builders are gone. Tougher financing requirements and the huge bureaucracy at Toronto City Hall are huge barriers to entry for new developers.


As a result the market is re-calibrating after the recession. Starts and New openings are picking up, but its going to have a different feel.