Quote:
Originally Posted by Enoch Root
The contamination continues to worsen.
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Okay, this is a factor that would increase the area’s priority.
Quote:
Originally Posted by heep223
You're saying they'll make sense if there is less condo supply on the market which will happen if the city is developing other sites (which doesn't make sense to me - why would condo capacity decrease), therefore condo prices will rise which is accretive to the developer's returns?
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There is a limited amount of unused/underused land in the City Centre where condo development is viable at current construction costs and sale prices. As these sites are developed, redevelopment will shift to greyfield sites with pre-existing developments. Greyfield sites with pre-existing development have higher redevelopment costs and this increases the sale price of new units that are constructed on these sites. Over time the redevelopment of greyfield sites with higher redevelopment costs is pursued and the price of units in these complicated redevelopments are closer to the prices required to make the private remediation of contaminated brownfield sites viable.
Quote:
Originally Posted by heep223
But you're also saying that by developing other areas, the land will increase in value (which is detrimental to the developer), so that the city will profit more when they sell it, so that it can contribute to the cleanup? or something.
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For the above theory to work, the developer has to purchase the land prior to any substantial uplift.