By: Ragona Sisters Team - Your Real Estate Agents for Vaughan, Toronto, Mississauga, Brampton javascript:void(0);

How Much Does It Cost for A Pre-Construction Condominium?

Tags: Condominium Prices

 

 
Have you ever wondered why pre-construction condominium prices are so high? Do you think it’s because the developers are greedy? Do you think it’s because of higher land prices?
Have you wondered “What is a developer’s profit margin?”

I’m here to answer your questions.

12%

Yes, these developers have a profit margin of roughly 12-20%

According to TREB, in 2017 the average condominium price was about $536,000, which has now risen for 2018.
 
Although, if you think about it, successful companies are able to stay in business because they offer a product/service that meets the demands, and needs of buyers, at a price that they’re willing to pay.

Let's assume that pre-construction condominium prices are $600.00 per sqft, and developers’ costs were, let’s say an example of, $300.00 per sqft.

Today, these developers are still paying $300.00 per sqft in costs, and they’ve just decided to charge $1,000.00 per sqft because they know consumers will still purchase these condominiums.

There are certainly other costs that are not being considered at the moment, but, it is growing harder for the millennial generation to purchase any type property due to these high costs.

 

1 Message Us On Facebook Message us on Facebook!
close