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Tag Archives: living space

Intensifying urbanization driving Toronto’s condo boom

Car­olyn Ire­land – Globe and Mail

I wrote recently about the plight of U.S. home­own­ers who are suf­fer­ing from the slide in house prices even if they dili­gently paid off their mort­gages and didn’t over-extend them­selves in the first place.

A reader shared another anec­dote: He’s just back from Lit­tle Rock, Ark., and says the real estate mar­ket there would be a rev­e­la­tion to many peo­ple on this side of the border.

He points to an 1887 man­sion for sale in Lit­tle Rock with 10 bed­rooms, three bath­rooms and a tur­ret. It has 7,800 square feet of liv­ing space and is listed on the National Reg­is­ter of her­itage prop­er­ties. In 1900, it belonged to the attor­ney gen­eral of Arkansas. Now it’s been sit­ting on the mar­ket long enough that the price has been cut to $419,000 (U.S.) from $525,000.

Cana­di­ans have no idea what’s hap­pened in Amer­ica,” says the reader.

Opin­ions vary widely about how likely it is that the same prob­lems will migrate to Cana­dian cities.

Com­ment: Sure, peo­ple throw crazy ideas around – but there are some who believe the world will end in Decem­ber… it does not make any of them more cred­i­ble. We are so dif­fer­ent from the US in so many ways that it is not even like com­par­ing apples and oranges, it is more like apples and elephants.

In Toronto and Van­cou­ver espe­cially, home buy­ers have loaded up on debt as real estate prices climb and inter­est rates remain low. And while the lat­est num­bers from the Cana­dian real estate asso­ci­a­tion show a pull­back in Van­cou­ver, Toronto con­tin­ues to climb unchecked.

Ear­lier this week, Bank of Canada Gov­er­nor Mark Car­ney sug­gested that higher inter­est rates “may become appro­pri­ate.” The cen­tral bank left its key rate unchanged at Tuesday’s meet­ing, but even the fact that Mr. Car­ney broached the sub­ject is taken as an omen by mar­ket watch­ers. Mr. Car­ney has sig­naled many times that he’s uneasy with the debt bur­den of Canadians.

Com­ment: And peo­ple heard the warn­ing, they are pay­ing down debt and avoid­ing big pur­chases. We are doing what we need to do to be safe. We are a smart bunch, us Cana­di­ans :)

And sure our banks are more pru­dent and finan­cial reg­u­la­tions more strin­gent than those in the United States before the crash there, but Cana­di­ans are now about as indebted as Amer­i­cans were at the peak of their bubble.

Com­ment: But we have higher employ­ment, no sub prime mort­gages and a will­ing­ness to cut down on debt. One mea­sure is the same, only one. Do not read too much into it.

At Toronto-Dominion Bank, chief Canada macro strate­gist David Tulk notes that the sub-prime mar­ket was small in Canada before rules were tight­ened, that mort­gage insur­ance is a pil­lar of the hous­ing mar­ket in this coun­try and that Cana­di­ans in gen­eral have pre­ferred very con­ser­v­a­tive mortgages.

Still, he believes the dura­bil­ity of the hous­ing mar­ket and the effi­cacy of its reg­u­la­tory insti­tu­tions will be tested as inter­est rates nor­mal­ize over the next cou­ple of years.

Com­ment: Nor­mal­ize? What does that even mean? Go up 2%? That is not going to do much of any­thing… we were 2% higher a few years back and 3% higher in 2007 when the last sales record was set.

At CIBC World Mar­kets, ana­lysts Alex Avery and Brad Sturges point out that Toronto’s condo mar­ket is often held out as the very pin­na­cle of excess in Cana­dian real estate.

But the ana­lysts believe the peo­ple behind those high-profile con­cerns (bank exec­u­tives, inter­na­tional mag­a­zines) are focus­ing on the pace of growth instead of the dri­vers of growth.

They note that Canada’s pop­u­la­tion is already con­cen­trated in cities and the pace of urban­iza­tion is accel­er­at­ing. Higher energy prices are push­ing up trans­porta­tion costs, eco­nomic devel­op­ment is con­tin­u­ing and a Green­belt around the area is push­ing devel­op­ment inwards.

Com­ment: Might that be a major dri­ver of demand for con­dos, for down­town liv­ing? Methinks so…

The vast major­ity of Toronto’s 132 or so high-rise tow­ers under con­struc­tion are con­do­minium build­ings within a 1.6-kilometre radius of Union Station.

At the same time, they note that single-family home devel­op­ment has been declin­ing con­sis­tently since 2002, falling steadily to just 51% of 2002 lev­els by 2011. Bid­ding wars for houses in pop­u­lar neigh­bour­hoods are the norm in the entry and mid­dle seg­ments of the mar­ket. “We expect Toronto’s urban­iza­tion trend to con­tinue, and expect prop­erty price per­for­mance to out­per­form less urban cen­tres in Canada, with even greater price per­for­mance in the city’s core,” say the ana­lysts in a report.

Tell us what you think: Is Toronto’s real estate mar­ket at risk from the amount of con­struc­tion going on down­town? Or do demo­graphic trends sup­port the need for all of those buildings?

—————————————————————————————————–
Con­tact the Jef­frey Team for more infor­ma­tion – 416−388−1960

Lau­rin & Natalie Jef­frey are Toronto Real­tors with Cen­tury 21 Regal Realty.
They did not write these arti­cles, they just repro­duce them here for peo­ple
who are inter­ested in Toronto real estate. They do not work for any builders.

—————————————————————————————————–


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  • As Toronto condos shrink, space grows precious

    Carolyn Ireland – Globe and Mail

    Jesse Blacker is an up-and-coming young hockey player who is currently lacing up for the Toronto Marlies and fervently working toward being called up by the Toronto Maple Leafs.

    Now, when he’s not on the road, Mr. Blacker can head back after practice to his own comfortable two-storey loft.

    Mr. Blacker and I talked about his recent purchase after I invited readers to send in their stories about buying and selling real estate in the current market.

    He is just settling into the loft in the Mystic Pointe building near Lakeshore and Parklawn. His furniture arrived a few days ago.

    Mr. Blacker is happy with the purchase: The unit had an asking price of $304,900 and he struck a deal at $298,500.

    The Toronto native says he liked the fact that the open-concept loft, with just less than 1,000 square feet, has two stories. The bedroom overlooks the living space below.

    He had been looking for a couple of months and most of the other condo units he saw were very cramped. “This is like a big house.”

    Ira Jelinek of Harvey Kalles Real Estate Ltd. represented the seller, actor and producer Brigitte Kingsley.

    Mr. Jelinek says the loft, which is in the former L.J. McGuinness Distillers building, has an authentic hard loft feel, and it includes parking, which is rare for a unit priced at less than $300,000 in and around the city.

    “It had a ton of space,” Mr. Jelinek says. “It’s more of a value play.”

    The same-sized unit in a building about six to 10 years old would fetch $450,000 to $500,000 if it were right downtown, he estimates.

    Finding a unit with space to spread is getting more difficult as condo units shrink.

    Paul Golini, chairman of the Building Industry and Land Development Association and executive vice-president at Empire Communities, says units may have shrunk as far as they possibly can. “There is a limit and we’re very close to it now. There are only so many bedrooms you can fit into 500 square feet.”

    Mr. Golini was speaking at a gathering last week to release year-end statistics for new building in the Greater Toronto Area in 2011 and provide an outlook for 2012.

    At the same confab, RealNet Canada Inc. reported that the average price per square foot for a high-rise condo came in at $529 in 2011, a 4% increase over the 2010 figure.

    Meanwhile, the average condo unit shrunk 6%, to 820 square feet. That’s 52 square feet less than the previous year’s average.

    Mr. Golini says builders have been making units smaller to keep them affordable.

    According to RealNet, high-rise “home types” as they like to call condo units, reached a record 62% of all new home sales. The low rise sector – in other words, houses, townhouses and semis – accounted for a record low 38%.

    That means apartment condominiums outsold traditional detached homes three-to-one.

    Let me know what you think about this shift in market dynamics: Are condo towers rising too quickly and becoming squeezed too far? Will demand keep up with this pace of building? Would you, like Mr. Blacker, put a premium on space?

    —————————————————————————————————–
    Contact the Jeffrey Team for more information – 416-388-1960

    Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
    They did not write these articles, they just reproduce them here for people
    who are interested in Toronto real estate. They do not work for any builders.

    —————————————————————————————————–


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  • Living the loft life in Toronto

    For many, moving to an urban apartment is about tapping into the excitement and cultural opportunities of the big city and can also mean a shorter commute to work. But finding a place in the city can mean sacrificing the larger living spaces found in the suburbs or country. Increasingly, urban dwellers are finding that loft apartments offer the location and opportunities of city life with far more space than average condos or apartment homes. What’s the idea behind lofts, and why are they so popular?

    Lofts have a certain allure. With high ceilings, open floor plans, rough-hewn floors, and brick walls, they are a hip housing alternative for many urban professionals. Today’s loft dwellers embrace new-age metropolitan living in all its glory.

    Those who buy these unique dwellings have shaken off long daily commutes, granting them more personal time, more cultural and entertainment possibilities and an active, city lifestyle. If you crave something eclectic, out of the ordinary and convenient to all the city has to offer, a loft may be for you! Select from newly constructed (soft) lofts, or restored historical building loft conversions (hard lofts).

    One definition for a loft found on the Web is — An appeal against convention- convention in thinking, convention in building and convention in living. They are a celebration of open concept living and unconventional spaces brought about by the considered application of imagination and a rejection of mass-market housing.

    The origin of the word loft comes from the Old Norse lopt which means “upper room “or “air”. In 19th-century English usage the word came to mean “the upper stories of a warehouse or factory”. The modern boom in the conversion of such spaces into living areas came in the 1940s in the SoHo District of New York City. By the 1970s so many of these conversions had been done that the city was forced to re-zone the area to make such conversions legal.

    By the 1980s the concept was spreading first across the United States and then to Europe and Asia. As the trend grew it caught the attention of developers identifying a new market. Developers being developers did not let a lack of owning an existing warehouse or factory building to convert stop them from moving into the new market. Thus the new word loft began to be applied to units in ground up new construction. Needless to say the term grew fuzzy.

    By 2005 the term loft has matured. Lofts created from spaces in existing buildings are called hard lofts or true lofts. Lofts built new from the ground up are typically referred to as soft lofts or new lofts or loft-inspired or mezzanine suites. Whether created out of an existing building or built ground up new, all lofts have certain common elements or they are not lofts.

    Lofts are part of the Postmodernism movement in architecture. Postmodernism is a counter- reaction to the strict and almost universal modernism of the mid-20th Century. It embraces elements from historical building styles incorporating them without a rigid adherence to one style. It also does not as policy try to hide the structural or mechanical elements of a building but often uses these in the design.

    What is a “hard” loft?

    A true loft is a conversion of a vintage factory or warehouse. They have a harder edge as they are usually constructed of concrete or “mill” construction of exposed brick, original wood posts, beams and floors. Typically, these lofts have an open floorplan and unfinished ceilings that are at least 10′ high with exposed ducts, plumbing and electrical. Examples include the Merchandise Building, Liberty Lofts and the Toy Factory Lofts.

    What is a “soft” loft?

    In recent years developers have built new buildings with some of the characteristics of a hard loft such as high ceilings, big windows and open floorplans. These lofts typically have a softer edge… no exposed ducts and plumbing, carpet in some areas and upscale kitchens and baths. Soft lofts have more in common with traditional condominiums than a true hard loft.

    What is an “artist live/work” loft?

    Toronto bylaws allow for the development of buildings with “artist live/work” zoning. The first of these developments appeared on Shanly Avenue (near Queen and Gladstone) and most featured minimal finishing, 16′ ceilings and steel frame construction. The City’s zoning restricted their use to people who were engaged in a precisely defined list of artistic activities. Over time these buildings have come to be occupied by people who simply enjoy the loft life.

    Here are some of the unique joys of the loft life:

    * Industrial buildings – The term loft began in New York and Chicago when renters and owners began turning old industrial buildings into living spaces. The original tenants were artists who craved the high ceilings, large windows and open floor plans typical of converted warehouses and factories.

    * Open spaces – The primary benefit of loft living is the large open spaces that allow you to live and move how you want, rather than having your movement defined by a permanent floor plan of walls, doorways and rooms.

    * Define your areas – In a loft, the floor plan can be fluid and ever changing. You can set up a sleeping area in one part of the space, then move it somewhere else if you have guests or if you just need the area for another use. Kitchens and bathrooms are more permanent, of course, but temporary partitions, hanging curtains, or even changes in floor covering can define other spaces.

    * Eclectic style – Another nice aspect of many lofts is the opportunity for eclectic design and decorating. For example, a loft might feature soft, delicate window treatments on reinforced factory windows, or a modern couch sitting on a hundred-year-old hardwood floor. This mixture of old with new and practicality with comfort can form a wonderful esthetic that makes the most of a loft’s mixed-use nature.

    Regardless of the type of loft, all lofts should have certain basic common elements:

    * Open, flowing floor plans
    * Minimal uses of interior walls to define space and doors to close off areas
    * High ceilings – some definitions set minimum ceiling heights at twelve feet or it is not a loft just a condo with high ceilings
    * Exposed piping, ductwork, structural elements
    * Large windows
    * Access to the sky often with roof top gardens or decks
    * Easily merges living and work space, blurring the lines between workplace and residence
    * Mixes traditional mediums with modern finishes- concrete, metal, stone, brick, wood used freely alongside of drywall, ceramic tile and viny

    ———————————————————————————————————————
    Contact the Jeffrey Team for more information – 416-388-1960

    Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
    They did not write these articles, they just reproduce them here for people
    who are interested in Toronto real estate. They do not work for any builders.

    ———————————————————————————————————————

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