Кризис на рынке недвижимости Гамильтона: тысячи несбыточных кондоминиумов и смена стратегии застройщиков

Developers in Hamilton’s central lower city have roughly a thousand unsold new or planned condo units amid a market collapse that has spurred some to cancel or rethink projects. That’s a significant change from just three years ago, says Pauline Lierman, a vice-president with real-estate research firm Zonda Urban about its second-quarter sales analysis. Toronto-based buyers were drawn to the “905” — including Hamilton — for more value for money, a trend that fuelled condo demand and sales, Lierman noted. “People were looking at that, and saying, ‘OK, I can get better value. We’re tapped out in downtown (Toronto). It doesn’t make sense with these numbers.’” But the previously investor-bolstered condo market across the Greater Toronto Hamilton Area (GTHA) has since borne the brunt of a market crash amid a swirl of high prices, hiked interest rates and spiked construction costs. A swath of Hamilton’s lower city that Zonda examined, from just west of Highway 403 to Wentworth Street and between the waterfront and escarpment, had 1,127 unsold condo units at the end of the second quarter. That represented 34 per cent of the area’s supply under construction, preconstruction or recently built, Lierman noted. Similarly, Vaughan Metropolitan Centre had 966 unsold condo units, which amounted to 43 per cent of the area’s stock. And by contrast, Toronto’s Entertainment District had 711 unsold units, which were 27 per cent of the inventory, Lierman noted. The condo market woes have resulted in a wave of project cancellations in the GTHA, including Slate Asset Management’s 27-storey tower at the former Corktown Plaza off John Street South in Hamilton. Nonetheless, the site was still a “compelling opportunity in Hamilton’s growing real estate market,” the firm said late last year, noting it was “re-evaluating how we may still be able to deliver much needed housing in a reasonable time frame.” Overall, Slate had planned three buildings — of 27, 14 and eight storeys — with nearly 800 units between them at the plaza. In a recent email, a representative said the firm still didn’t have anything new to share about the site’s future. During the slump, aspiring condo-builders have struggled to reach the typical presales threshold of 70 per cent to line up financing to get shovels in the ground. That hurdle has prompted some developers to switch to rental tenure, including those behind a mid-rise project at Gore Park, long pitched as a mixed-use condo plan. Recently before the city’s design-review panel, the Hughson Business Space Corporation proposal calls for a 12-storey rental building with ground-floor commercial space where heritage buildings collapsed in 2024. “It’s definitely a function of the market and trying to get something in that gap as soon as possible,” Daniel Bragagnolo, finance director with project partner Ninco Developments Inc., told The Spectator in a previous interview. Likewise, a new developer working on another long-stalled condo tower at the partly demolished James Street Baptist Church on James Street South is leaning toward rental, Alan Leela, co-founder and partner of Vantage Developments Inc., recently told The Spectator “we’re working to put together various pieces of the puzzle to execute this strategy.” In other cases, developers have offered incentives to drive sales, including a rent-to-own option Fengate Asset Management introduced last year that tenants of its downtown rental building could apply to its condo tower at 75 James St. S. In an emailed statement, Fengate says it launched that project “during one of the most challenging periods for new condominium sales in recent history” in late 2022, but despite the challenges, the building has reached 60 per cent sales, which is nearly 400 preconstruction homes. “This performance reflects the strength of the product, its location in downtown Hamilton, and the long-term confidence buyers continue to have in the community.” So far, the rental equity program, focused on the King William Rentals and 75 James, has yielded “strong interest from residents with several exploring ownership opportunities,” Fengate said. Rosehaven Homes, meanwhile, has offered an extended deposit plan as an alternative to the traditional, lump-sum down payment to encourage sales at its planned 23-storey building downtown on Rebecca Street. Amid the slump, new Hamilton condos have dropped in price to around $900 per square foot from a peak of about $1,150, Lierman noted. So it’s definitely a buyer’s market with room to negotiate, she said. Sales should rebound, but it won’t be “boom times” again, predicted Lierman, adding developers will have to look at “more functional layouts” to lure buyers. “I think we got a little too far ahead of the small ones.” Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy. This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page.