How to make your own luxury condos in Toronto
When it comes to the luxury condo market, Toronto is definitely the city of dreams.
The city is home to the most expensive homes in the world, with prices that range from $1.7-million to more than $20-million per square foot.
That’s a lot of money for the average family of four to pay for a home, and there are thousands of condos available.
But how much of that land can be used for luxury housing?
That’s the big question as developers work to fill Toronto’s rapidly growing luxury condo shortage.
In the next few weeks, city council will consider two bills that would allow Toronto to create up to 25 new luxury condos, according to the Toronto Star.
Both bills would allow the city to open up up some land on which to build luxury condominiums.
The first bill, introduced by city councillors last year, would allow developers to open their projects on city-owned land.
The second bill, which has yet to be tabled, would permit the city council to grant the developer permission to build a hotel or condominium on city land.
Under the proposed legislation, a developer would have to first obtain approval from the city’s planning department.
The developers would then be able to build on the land that would otherwise be considered part of the city.
But there are some restrictions that the city could apply to ensure that there are no conflicts between the condo development and development in the neighbourhood.
“The first requirement would be that there would be no conflict with the use of city land, and the developer would be required to develop on a site that has a clear, continuous view of the street and a good view of city property, in order to avoid conflicts with other residential development,” says David Czukay, the city planner responsible for the development plans for the proposed condo projects.
The first law also would allow for a maximum of 50 per cent of the condo project to be located on city or public land.
This limit could be increased to 80 per cent if a condo development has a maximum height of 25 metres, or up to 95 per cent in cases where the condo includes residential units or a public park.
A second law, also introduced last year by council, would require developers to provide a plan for the design of any condo units.
The development plan would have the city or developer develop the building in an approved way.
If the city approves the development plan, the development could proceed.
But if the city rejects the plan, a building permit could be issued and a condo could not go ahead.
Another bill, proposed in 2017 by city councillor Maria Augimeri, would provide for a $100,000 permit for a developer to build condos.
The proposed permit would be issued after the developer has already applied for a development permit and the building permit has been approved.
The application fee would be $30,000.
Developers would have three years to develop the proposed project on city lands and, if approved, the permits would last three years.
As the city has a massive condo shortage, developers are trying to fill the gap.
Many of the new luxury condos have been built for middle-class buyers, but the demand for condo units has not been as high.
The demand is growing, but prices are not as high as they were.
The Toronto Real Estate Board says that prices for condos have dropped by about 30 per cent over the last five years.
The average price of a condo in Toronto has risen by about 28 per cent.
But the shortage of new condo units in the city is still very much a concern, according the Toronto Real estate Board.
“We are still facing a shortage in Toronto and that is a major concern for us and we are working to fill it,” says Robert Kavcic, chief executive of the Toronto-based Toronto Realty Board.
“I think we have seen a significant decrease in demand for condos over the past five years,” Kavciic says.
“So we’re trying to ramp up our inventory.”
If the two bills become law, they could allow condo developers to build thousands of luxury condo units on city owned land in a matter of months.
And developers would be free to build and operate condo towers as they see fit, with no restrictions.
While it’s possible the city would approve the proposed development permits and the condo towers would go ahead, it would be unlikely, says Richard Haines, the executive director of the Institute of Urban and Regional Research.
He says there are also some issues with the city building permits, including the requirement that they be signed by a senior city official.
Haines says there is no guarantee that developers would have permission to expand the land on their projects, as the city did not allow any new condo development on city property before it approved its luxury condo legislation last year.
There are also issues with condo construction.
There is still a significant shortage of condos for sale in the GTA, with fewer than a thousand units available