Downtown condominium plans cancelled over increasing interest rates
Posted Sep 6, 2022 07:00:00 PM.
Due to increasing economic pressures, plans to build a Hintonburg condominium have been cancelled.
Neil Malhotra, chief financial officer (CFO) for Claridge Homes, told The Rob Snow Show on Tuesday, Sept. 6, that increasing inflation and interest rates are preventing the project from moving forward.
“When you're completing a multimillion-dollar project, that interest rate, effectively doubling or even tripling, has a very significant cost impact,” he explained, adding that development charges are also increasing by eight to 10 per cent in October.
Malhorta explained that it's at a point where they can no longer produce the units at a price people could afford.
“So, unfortunately, the project is not able to proceed,” he said, adding that this has never happened in the 20-plus years he's worked at Claridge; however, with more people working from home, there's less of a demand for people to move downtown he explained.
Listen to the full interview with Neil Malhorta below:
