A new 57-storey condo tower by Tridel.
Right in the heart of central downtown Toronto.
At 60 Queen Street East.
Launching for sale in a cooling market, how would it turn out?
Recently, we talked about the cooling resale market.
Overall, sales volume was down by around 40%.
Prices are still holding on tight though.
And in the 416 area, the City of Toronto, prices have even gone up slightly.
What about the pre-construction market?
It’s obviously cooling as well.
But similar to the resale market, the cooling effect is not equal in all projects.
In a very hot market, there are so many investors, let’s just say 10,000 investors.
And every pre-construction project only has a few hundred units, say 500.
So 20 new buildings will be sold out just like that.
That’s when you feel like any project by any developer at any location would just sell out anyway.
Now that the market has cooled down, let’s just say half of the investors are gone.
They are worried and they’ve stepped to the sideline.
The remaining ones are all high quality investors looking for high quality products.
You would be very selective, right?
You would see some struggles with lower quality projects, but the high quality ones would actually thrive through a cooling market.
Isn’t that true with many things in life?
When challenges come up, they are actually opportunities for high quality people and businesses to shine and stand out from the crowd.
What about a developer with 87 years of history and 87,000 homes built?
That’s Tridel.
With 87 years, they’ve obviously thrived through all the ups and downs in the market.
And I think very few people would disagree if I say Tridel is a top quality developer in Toronto.
That’s reputation.
Tridel is going to build onto their winning reputation by being the first one to launch a project in downtown Toronto in a cooled market.
Because they know they have a winning card.
I’m now at the Yonge and Queen intersection.
Eaton Centre is right behind me.
Subway entrance right over there.
Financial district is just down the road.
And now we’re going to walk over to the Tridel site.
We have the streetcar running along Queen Street.
Another subway entrance to the Queen Station.
You can see St. Michael’s Hospital right there.
This is a very important feature because you will get doctors as your tenants.
Why would doctors rent?
As a matter of fact, many doctors in training are renters.
Toronto gets many doctors from other provinces and other countries.
Even for established surgeons, they need to live close to the hospital because they must arrive within a certain number of minutes when they are on call.
So they often have 2 homes, one that they rent close to the hospital, and another one that they own further away from the hospital.
You see, having a famous hospital next door is a big upgrade to your investment.
When you see the Church, you know that’s Church Street.
The yellow structure is the Tridel site at 60 Queen Street East.
So we’re essentially next door to St Michael’s Hospital and just a 4-minute walk from the Eaton Centre, Queen Station Subway and the Financial District at Yonge and Queen.
That’s why I said Tridel has a winning card.
And you will find the pricing to be very reasonable.
When Tridel came up with the pricing, they did not factor in the impacts of the massive construction labour strike and no inclusionary zoning policy will be applied to this building.
On a typical floor plate, there will be no 1 bedroom units.
But studios will be over 400 square feet and they are wide and shallow with lots of windows.
They will start from low $700,000.
The three 1+Den units will all be facing south and they will start from low $900,000.
The 2 bedroom corner units will start from around $1.1 million dollars.
The southeast 3 bedroom unit will be over 800 square feet and will start at around $1.3 million dollars.
Occupancy will be in 2027.
So you have that perfect 5 year window.
By then, the market would have absorbed all the interest rate hikes and various uncertainties that the market is facing right now.
Remember, when in doubt, stick to the principles, real estate always goes up in the long run.
And there’s no other investments where you can leverage 70% of the money from the bank.
Well, the bank is not stupid, right?
Why would they invest more money than you?
Obviously, they know that real estate is a very safe investment.
Here’s the thing.
If 20 projects would sell out immediately in a heated market, nowadays maybe only 10 or even just 5 would sell quickly.
And Tridel’s 60 Queen would definitely be 1 of the 5.
I know that because I already have some high quality buyers lining up for it.
A great value product in a prime location will always weather the storm, doesn’t matter good market or bad market.
Afterall, they don’t need 10,000 buyers, they only have 500 units available for quality buyers to grab.
If you are looking for a high quality product, this is one that you shouldn’t miss.
Schedule a call with me at the link below to enjoy a truly unparalleled investment experience.