Midtown Hank said:
This is very much the point. Inflating land values by allowing increased density is happening all over the place. That phenomenon reverberates throughout an area and makes land acquisition and the cost of development more challenging, reducing the economic return and incentive to develop. In the case of this project, who in the immediate neighbourhood is now going to sell their modest house for under $2MM (or whatever the # is). Basically, the value of all the residences nearby have increased, raising the costs of inputs. Economics of 4 plex or 6 plex is prohibitive, so we get 45 storey proposals.
Click to expand...

It is incredibly difficult to sell a single property, not an assembly, on the basis of future assembly potential and redevelopment. There will always be a time-value discount that purchasers price in. You're absolutely right - the value of these homes is no longer just as a home, but somewhere in between the home value and the assembled value (which is higher than the home value).

However, I would argue that these rezonings coming forward are the most important. Assembly work in today's environment, done correctly, is amongst the most cost-effective way of delivering housing. You can assemble a site today in midtown at well under $100 PSF, but if you tried to buy any commercial property on Yonge or Eglinton, you wouldn't be able to find a seller at that threshold. If someone proposes replacing a 30-storey apartment with a 70-storey tower today, it's a joke.

Most of the folks purchasing and assembling today, compared to three years ago, are actually looking to build. Stafford certainly is here. There are a few people still attempting to assemble and flip in today's environment, and they have not been executing. I know of 4 midtown speculation assemblies that have collapsed in the last few months because the speculator offered too much and no developer was interested.
 
Midtown Hank said:
Interesting hypothesis, and in theory makes sense if you completely deregulate the entire yellowbelt. In practical terms, an individual land parcel does not drop in value once it is upzoned. It increases. That is why many developers are doing it (and at a significant investment for all the consulting & legal fess).
Click to expand...
Yes - because one site isn't enough to dilute the entire market.

If every site is a tower site though... no site is inherently worth more than another.

Basically right now, a site that isn't zoned for towers in the yellowbelt is worth, say, $10 million in the houses that sit on it. Post-rezoning, it's worth, say, $40 million.

If you went around and pre-zoned all yellowbelt areas within 800m of a subway station for up to 30 storeys as-of-right, yes, those houses would increase in value. But it wouldn't be to $40 million. It would be to something like $15-20 million.

That would lower land costs (and therefor purchase prices!) for end buyers and builders, and remove the incentive to rezone. The whole cottage industry of fake proposals would disappear and builders would focus on delivering housing instead of securing entitlements. They would simply buy up land as they need it as there would be no shortage and therefor no inherent value in holding a zoned site.

Basically..

 
stfeinberg said:
Excellent discussions happening right now. This is what makes UrbanToronto great. 👍
Click to expand...
Ian-Holm-as-Ash-in-Alien.jpg
 
ProjectEnd said:
LMAO

View attachment 678284
Click to expand...

The problem here is not the colour, really. Nor the 'story telling' of marketing speak.

People (customers) and area residents and UT forumers have complained for years about coldness, sterility and an unending sea of grey.

A warmer tone, generally is welcome.

Now, this is T-F and even at the high design level that doesn't mean anything there are not some nits to pick on the manner of design here.

I agree the marketing speak should not be reaching back to the 19th C to justify non-grey for a colour.............but shrug.

I'd much rather T-F leaned into better building materials and better execution than better 'contrived inspiration'.
 
Last edited:
You must log in or register to post here.

Back
Top