Is a condo in Toronto really worth the million-dollar price tag? Despite declining sales in Toronto’s new-home market, prices remain high, with the benchmark price of a new condo at about $1.210 million in June. Rising building costs and government fees are being blamed by developers for these high prices.
Developers are calling for tax breaks and reduced development charges to lower condo costs. The cost breakdown of a Toronto condo includes land costs, construction costs, government charges, and developer profits.
Developer profits aim for 15%, while land costs make up around 7.5% of the total expenses. ‘Hard’ construction costs range from 40 to 45%, while ‘soft’ construction costs account for about 22%.
To reduce condo prices, suggestions include moderating development charges and leasing public land for affordable housing. The debate continues on how to lower Toronto condo costs while maintaining growth and sustainability.