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- Jun 24, 2014
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There's a super luxury condo development currently under construction in downtown Toronto. Two years ago their penthouses were fetching $20m-$30m depending on the sqft (these are multi floor units, 4000+sqft). I think the builder has dropped prices by about $3-5m per unit.. construction costs have risen exponentially, demand has gone to shit. I'm just trying to figure out how some of these super luxury condo developments under construction are even coming out whole at this point. I've read about one development takeover so far, won't be surprised if there are many more in the near future.Problem with $10m+ homes is that the value is subjective. Some people build elaborate marble floors and other just focus on location and build a regular luxury spec. $2m +\- in a shit market for luxury isn’t bad. I bet luxury condominiums are suffering big.
Same issue with exotic cars. I visited a friend of mine (older guy) that owns a supercar dealership two days ago. He literally has 20 cars (Lamborghinis, Ferraris, and Rolls Royces) in stock. He told me he's under water for a few already as he paid too much last year. He hasn't gotten one call in weeks for ANY of his in stock cars... let that sink in. Imagine sitting on $15m+ inventory, overpaying for a few, and not making any sales for months...
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