How much would you discount a great condominium unit if it looked out directly at a construction site?
Short of actually getting inside this giant hole, I couldn’t have gotten much closer to the action…
Remember when I first wrote about “MYC Condos?” I wasn’t very nice…
I was driving by the site one night during their “pre-sale launch” and I decided to pull over and have a look inside. I was stopped at the door by two large men in yellow “SECURITY” jackets who asked me, “Where is your purple wrist-band?”
Apparently, this launch party was such a hot ticket that you had to be on the V-V-VVVIP list to get inside.
So I had a great laugh later that year when they tore down their sales centre prematurely and then the project was delayed for two years.
Anyways…
My point today is not about pathetic pre-construction VVIP launch parties and how they come with the same false values as private booths and bottle service at night-clubs, but rather about the value of a condo that looks out at a construction site, and how it’s an opportunity for a buyer who works long hours and won’t be disturbed by the noise to pick up a discount.
For any would-be buyer at 18 Merton, or current resident, none of this will matter when they go to sell five years down the line. There will be a sleek glass tower on the other side of the street, and nobody will complain about the view that used to be there, or the construction site that created a traffic nightmare for 9 months.
If you can endure the construction across the street, you’ll likely get a discount on the unit you’re looking to buy.
What works for some, might not work for others. But it’s always worth considering…
Devore
at 7:41 pm
I thought you would be talking about the (forever) loss of a nice view, not the 1 year of construction. Which will impact the value of the units more? Which will have a more lasting effect? Although _eventually_ all parking lots will be turned into condos, buyers seem to put a lesser discount on that possibility. The construction is only an issue if you need to sell while it’s happening.
BillyO
at 1:44 pm
This is why I bought in Infinity Bremner/Grand Trunk (in between York and Lower Simcoe). They are constructing 4 condos (Ice I and II, Infintity 3 and 4) 2 offices (130 Bremner and 16 York St) and a hotel (new Delta Chelsea) in this block, on top of the newish Maple Leaf Square condo and Telus and Price Waterhouse Coopers offices. They are also constructing the new acquarium nearby as well making huge improvements ($300 mil reno) to Union Station. So in total the area (I guess now to be called Southcore) will hold all these buildingss, plus the monstrous Ten York and Menkes proposal just further down towards Harbour St, as well as RBC’s new headquaters. All told, that’s 15 condos/offices total.
But, I got in the low $400s PSF, and there’s no way I’d sell now. Once the entire block gets built out (2015-2016) and the periphery later (2018-2019), this area will be one of the best locations in Toronto: steps to Harnourfront, Union Station, King West, with the ACC and Rogers serving as bookends. Great access to highways too. To the untrained eye it’s just a lot of cranes, noise, and dust, but I see this as one of the best locations in Toronto. It will be very densely populated, but then again, so will King and Queen W, the Entertainemnt District, Yorkville and Yonge (Queen to Bloor) with all the proposals popping up for those areas.
I’d say it’s well worth it to get in early even with constsnt construction for 3-5 years, but as David said, if it’s worth it and you can come out on top. Personally, I think it is.