Condos are a huge part of Toronto’s vibrant future, it really goes without saying. In time we will not see many houses in the core, which also means few yards. Public parks will have to be reclaimed or built by condo developers. So what does this mean to those who want outdoor space?
Most of my condo buyers say that they are not fussed on which direction their condo faces. However, when it comes to outdoor space, whether that is a balcony, walkout terrace or rooftop terrace they want it all! The challenge becomes what are they willing to pay for this space?
What I will add is that as much as most want the owned outdoor space very few actually use it. I suppose it’s nice to know that it is there if one wanted to step outside for fresh air. Or, maybe there is a psychological draw of knowing that the outdoor space is there and that you are not restricted to the interior of your condo.
It’s hard to say what the actual motivation is but it certainly is a head scratcher.
I say it’s a head scratcher as most of my clients rarely use the space. Most new buildings have a rooftop common space for BBQing, socializing and sitting out in the sunshine.
The biggest part of this head scratch is that the outdoor space costs the buyer more money. When it comes to condos all of your owned space is a cost per square foot. The interior space is a certain cost per square foot. The exterior space is another…however, this is not as much of a hard science. It can be very challenging to evaluate the owned outdoor space. Will a buyer be willing to pay for the space? Is the terrace so large that it’s simply cost prohibitive for the buyer?
As an example, let’s say that the buyer wants to buy a 650 square foot condo. The cost per square is $675. That equates to a value of $438,750. Now let’s say there is another identical condo that boasts a walk out terrace that is 300 square feet…which is very large in proportion to the living space. This seller is asking for $600,000.
Which one would you buy?
As much as the buyer started with a wish list that included outdoor space this option may now be too rich for their tastes.
Large outdoor space can really impact the value and saleability of the unit. The outdoor space, within reason, makes the the condo more saleable. If the market is in a slump the condo with the terrace or balcony will be more attractive to the buyer than the one without it.
