No and not for the past 3-4 years. It used to be the case that you could buy on opening weekend from floorplans 3 years in advance at prices less than you’d see in the resale market. Today, with most new construction projects around $600-$650 per sq ft, it’s easy to find a comparable product for a lower price. The justification most often explained by new construction sales sites is that when your condo will be ready 3 years from now, the market will bring you more than what you’d pay today. They also explain that their costs have increased significantly. I do understand that land values, permits and the cost of construction have all increased which has put pressure on new construction prices.
I believe the question most want answered is if todays new construction prices of $600-$650 per sq ft and up will bring them a profit in 3 years. With most cases, I struggle to believe so. Once you factor in your occupancy costs, closing adjustments and the selling costs… you would have to sell your new suite at around $650-$700 per sq ft to see any profit. I was much more comfortable recommending new construction projects when they offered values at or below current market prices.

There are still some good new construction options around though if you search hard enough and believe in value investing. One of our clients recently secured a couple suites at 530 St Clair Ave W. An upcoming neighbourhood which we thought offered very good values with suites under $500 per sq ft. There is easy access to the subway, new streetcar lines along St Clair and all the amenities of a developed neighbourhood. Please feel free to contact us to discuss any other new construction option as well.

If you’re looking to buy new construction as an investment or for personal use, just contact us and we’d be happy to help you with your search.