Wadhurst Townhomes | 11.75m | ?s

CplKlinger

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TAS

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I was by this morning - still one house up. With it mostly cleared including many trees, it's actually hard to believe there will be 11 townhomes on here. Nice added density while also providing a product lacking in the area.

May not be as affordable as I was hoping though and with interest rates rising, that may also reduce number of buyers. At least lumber prices are down 20% (although still way up since 2020).
 
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TAS

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I see that pre sales start in summer and prices start in the mid $800s. I was definitely off on a price for an 1,800sqft townhome with no basement foundation. Location, location though.

Another shining example of increasing density in the city with infill but reducing affordability.

But the city does gain significantly. It previously had three homes on those lots all valued at less than $500k and now it will have property tax for 11 homes at $900k each.
 

occidentalcapital

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I see that pre sales start in summer and prices start in the mid $800s. I was definitely off on a price for an 1,800sqft townhome with no basement foundation. Location, location though.

Another shining example of increasing density in the city with infill but reducing affordability.

But the city does gain significantly. It previously had three homes on those lots all valued at less than $500k and now it will have property tax for 11 homes at $900k each.
I don't agree that this reduces affordability. Why? Because there are now 11 more buyers accomodated here who will not be spending 900k on existing stock homes. Ergo, demand will fall for the existing stock, reducing their price. Have to look at the whole market, rather than one project. If your new build stuff is at the high-end of the market, and you build enough of it, it will press down prices on the old stock. Domino effect makes everything more affordable. Allows the older stock to depreciate and become more affordable housing.
 

TAS

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I don't agree that this reduces affordability. Why? Because there are now 11 more buyers accomodated here who will not be spending 900k on existing stock homes. Ergo, demand will fall for the existing stock, reducing their price. Have to look at the whole market, rather than one project. If your new build stuff is at the high-end of the market, and you build enough of it, it will press down prices on the old stock. Domino effect makes everything more affordable. Allows the older stock to depreciate and become more affordable housing.

Is that how it works?. I didn't think we we're seeing older stock becoming more affordable and depreciating. It seems like costs for older homes in infill neighbourhoods have been appreciating unless they are in poor condition, in which case they have still been getting good money as land values have been increasing.
 

occidentalcapital

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Is that how it works?. I didn't think we we're seeing older stock becoming more affordable and depreciating. It seems like costs for older homes in infill neighbourhoods have been appreciating unless they are in poor condition, in which case they have still been getting good money as land values have been increasing.
I think so. If you want to be precise, it would be that the rate of appreciation is slower, rather than experiencing outright depreciation. This is pretty much the story of Edmonton and why Edmonton's houses are still "affordable". The new-home industry has always been competitive here, lots of builders providing a steady supply to the marketplace. That supply soaks up the demand. You can infill like crazy here, way more than what is allowable in Toronto/Vancouver (i.e. basement suites, no parking minimums) and despite this, Edmonton's land values are a lot lower than those other cities. The mere ability to densify is only valuable if you are in a housing-supply constrained city...let's hope we never get to that point.
 

supaflyryguy

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I'm pretty sure the way it works is the neighbourhing properties increase in value as the land they sit on are now established to be much more valuable. Nothing gets cheaper with this development.
 

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