The City of New Westminster is about to start charging highrise condo developers a bonus formula of $25 per square foot for the extra space achieved through higher-density zoning.
The charge will apply only to new development applications this year and will be charged only on the extra space permitted, not to the entire building footprint, a city planner explained.
There are now 14 new condo projects marketing in the Royal City and the supply of unsold units in highrise projects exceeds demand, according to the Condominium Market Opportunities Report by Strategics, a Vancouver research firm that tracks the new-condo market.
Sales have slowed over the past six months even as new projects came to the market, such as the 196-unit Trapp+Holbrook tower. A condo highrise is also planned in the Plaza 88 complex.
There are now about 530 new and unsold highrise units on the market. Prices for highrise condos in New West average $534 per square foot, but some new projects are priced from $415 per square foot according to Strategic's research.
Salient Group's Trapp+Holbrook tower on Columbia Street has 100 highrise condos priced under $300,000.
from Western Investor May 2013
