# Canada's Condominium Generation



## hkskyline (Sep 13, 2002)

*Living the swinging condo life*
Drawn like moths to the housing industry's hottest market segment, twentysomethings find a whole new social scene 
28 September 2007
The Globe and Mail










VANCOUVER -- Brothers Mike and Dave Burns look out of the floor-to-ceiling windows of their two-bedroom condo near Vancouver's trendy Yaletown and consider the downtown neighbourhood. 

They live in an 840-square-foot apartment decorated in the contemporary minimalism of a show suite. There is the leather couch, the teak floor lamp, the 48-inch plasma TV and the polished concrete floor. 

Mike, 26, points toward nearby towers in almost every direction where friends reside; his girlfriend lives in one of them. 

The brothers have been living in the Brava building since April, when after several years of renting, they decided it was time to get into the real estate market before it passed them by. They are part of a demographic that now represents a significant share of the urban condominium market: twentysomethings who work at white-collar, trade or service-industry jobs; enjoy the benefits of not having to drive everywhere; and are often single and sociable. 

In Vancouver, Toronto and other large Canadian cities, it's a demographic that's reshaping neighbourhoods and the condo industry. And it has prompted savvy builders and marketers to adopt new sales methods, like throwing catered parties to launch new buildings, and using the Internet in more creative ways. 

There was a time when most people would spend the bulk of their young adult years as renters. Only when career advancement and marriage came along did they consider the daunting real estate purchase – the biggest single buy of a lifetime. 

These days, condos are like a rite of passage for investment-minded young adults, who see their purchase as just a starter for a series of future real estate buys. 

In Vancouver, condos geared toward these first-time buyers have popped up in downtown areas such as Yaletown and Gastown. 

Living there makes it possible for residents to save money on transportation by walking to work. And because their condos come rife with amenities, they don't even have to leave the building to find a party. 

“My friends are here, my girlfriend is here, my work is here,” says Mike Burns, who works as a banker. “For this period in my life … it just seems that everything I want is right downtown. It's like a campus for young professional grown-ups.” 

His brother, Dave, 25, is a plumber who works at nearby construction sites where condos like his are going up. About the only time he uses his car, he says, is to go play soccer and see his girlfriend. 

According to Brad Lamb, Toronto's “condo king” and star of the reality TV show Big City Broker, new condos are the hottest commodity in North America, and it's a market driven by young first-time buyers and the investors who compete with them. About 40 per cent of the new suites in downtown Toronto are built with that demographic in mind, he adds. 

“I've done many, many developments that are geared toward younger people – probably approaching 90 new developments in Toronto, Ottawa and Montreal,” Mr. Lamb adds. Units in these projects may range from 400 to 2,000 square feet, but most of them are less than 900 square feet, he explains. 

“So the bulk of them will be less than half a million dollars. My firm's product – that we promote and develop and sell – is really for people 20 to 40.” 

He notes that a new unit priced under $250,000 in downtown Toronto is snapped up immediately. 

“Twenty years ago, the condo lifestyle in any city, including Toronto, was looked down upon by the generation of people that sort of drove the economy back then – the people who came from the single-family home, suburban lifestyle,” he explains. 

“The unique factor today is [young] people are completely committed and comfortable buying condos. When I started selling condos in 1988, young people had their parents on their shoulder, saying, ‘You don't want to buy a condo. They're a very risky investment.' Well, young people today know better. They know it's no riskier than buying a single-family home.” 

In Vancouver, however, prices downtown are creeping so high that many young adults are shifting their searches to the east side and the suburb of Burnaby, places that won't require them to take bridges or freeways to get into the core, says Bob Rennie, the city's most high-profile real estate agent. “The problem that we have is there is very little developable land in downtown Vancouver,” Mr. Rennie notes. 

“Now, for a 600-square-foot suite, it's all starting to break $425,000, and that's in the bottom of the building for a one bedroom. So without mom and dad's help, downtown Vancouver is becoming difficult for the young buyer.” 

Nic Jensen, 27, a sales and marketing manager for Amacon developers, helped the Burns brothers find their condo, and he owns one himself. He purchased a 500-square-foot unit in a downtown complex called Yaletown Park three years ago. It was such a desirable property that all 494 units in the first two towers sold out in one weekend, with line-ups of mostly young people going around the block. (A third tower sold out later.) 

“Condo living in Vancouver has become so socially acceptable, whereas five years ago it just wasn't there,” he says. 

Like a lot of first-time buyers, Mr. Jensen asked himself the question, “Why rent when you can own?” 

He purchased his condo for $230,000 with a 10-per-cent down payment and a five-year mortgage term at an interest rate of 4.7 per cent. His monthly payment is $1,250, compared with the $1,500 a month he could get to rent his one-bedroom unit. 

The Burns brothers paid $482,000 for their two-bedroom unit last spring, with a five-year loan from their parents at a 5-per-cent interest rate. Together, they pay $2,400 a month, which, when the strata, or maintenance fee, is included, is much higher than what it would cost to rent their space. 

But an identical unit in their building is on the market for $70,000 more than what they paid. The upside is that they are now in a market that could have easily passed them by if they hadn't acted fast enough. (And they're confident enough in the condo market to have purchased a second property – a unit in Abbotsford that they plan to rent out.) 

“There are three things going on right now,” Mr. Lamb says. “Incomes are higher than they've ever been. … And the prices are very high. But interest rates are low, and they're allowing people to get in.” 

It's generally agreed that the income level required for the small starter apartment is about $50,000 a year in both Toronto and Vancouver. 

“What attracts [buyers] is they don't want to be renting for the rest of their life,” Mr. Lamb notes. 

There's that, plus the fact that most new buildings are chock full of amenities for the young adult. In the two-tower complex where the Burns brothers live, for instance, there is a full-sized gym, an outdoor lap pool, media room, party room, study room, billiards room, communal hot tub, sauna, steam room, and suites for out-of-town guests at the reasonable rate of $50 a night. 

“This is absolutely a dating environment,” Mike Burns says. “Sometimes it's funny, walking down to the pool deck and there are lots of girls lying around,” he adds, smiling broadly but carefully noting that he and his brother have girlfriends. 

When Mr. Lamb hears about Vancouver's campus-like downtown condo environment, he is immediately reminded of the Toronto complex on former railway land called CityPlace. 

“This is a ghetto of young people. There are 9,000 or 10,000 condos that they are building down here … and it's great for them because there are a lot of people their own age, so if you want to meet a guy or a girl there are lots of opportunities there. They build large facilities with tennis courts, with squash courts, with bowling alleys – there are always places to go to do things, to meet people. So there is a tremendous amount of facilities. And for some young people, that is very desirable.” 

The resounding themes are convenience and social networking – youthful demands that are not lost on the marketers behind the new developments. 

One of the most obvious methods to reach the target audience is to hire a young staff of marketers. Mr. Jensen of Amacon says he has used his own social network to sell condos, and he sees the hugely popular social networking website Facebook as a valuable future tool for the marketing of condos. 

Big parties catered by cool hangouts are now routine events used to launch new buildings. 

In the case of the Donovan condo complex in Vancouver, Cressey Development Group implemented a unique and controversial marketing campaign that included a five-part Web-based “viral video.” Cressey hired a local filmmaker, and actors Crystal Bublé (singer Michael Bublé's sister) and Matty Finochio (Martin Short's nephew) to portray characters Anya and her flamboyant and stylish gay friend. They could have walked straight out of the raunchy TV series Sex and the City. 

In its quest for the youth market, the Cressey series – about a love triangle involving Anya, her gay friend, and a handsome male resident of the building – pushed the boundaries of the usually conservative world of condo marketing. Media manager Marcella Munro, who helped produce the series, says she even got calls from surprised marketers in Mobile, Ala. 

But their inspiration was the gay-friendly, liberal-minded West Coaster who wanted a downtown lifestyle. 

“We asked, ‘What kind of life could we envision people living there having?' as opposed to just talking about faucets and countertops and location,” says Ms. Munro, a former Toronto-based producer of CBC television shows such as The National. 

Judging from the average 15,000 hits a day that each “webisode” drew, the slice-of-life comedy may have paid off. The Donovan sold 97 per cent of its 152 units within two months. A 573-square-foot unit went for $395,000. 

Savvy marketing schemes aside, is all this snapping up of real estate for people who are new to the work force? Mr. Lamb dispenses some advice for them. 

“If you are going to borrow money, borrow it on a five-year term so five years from now, you know what your payments are,” he counsels. “And don't live hand to mouth – put money away for a rainy day.” 

Mr. Rennie, meanwhile, believes that Vancouver will become one of the most expensive cities on the planet, a fact that will protect any investor. 

“The same pressure that's pushing prices up and causing no product and no availability of residential developable land downtown is the same safeguard that's going to protect your value,” he says. 

“You got in where others can't.”


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## hkskyline (Sep 13, 2002)

*Calgary catches condo fever
Multi-family starts more than triple in October *
Calgary Herald
9 November 2007

The number of multi-family housing starts in the Calgary area more than tripled in October compared with a year ago, according to data released Thursday by Canada Mortgage and Housing Corp. 

The increase in multi-family starts was a result of a number of new foundations poured for apartment condominium projects, primarily on the east and southeast side of the city, said Lai Sing Louie, senior market analyst in Calgary for the CMHC. 

In October, there were 644 multi-family starts in the Calgary Census Metropolitan Area, a 206.7 per cent increase from October 2006's 210 units. The pace of activity in that sector pushed total housing starts for the month to 1,324, a 31 per cent hike from last year's 1,011 units. 

"Similar to last month, the production of multi-family starts was more than high enough to offset a decrease in single-detached starts," said Louie, adding the multi-family market is expected to continue to be strong for the rest of the year. 

The Calgary CMA includes the city, Airdrie, the Municipal District of Rocky View, Chestermere, Cochrane, Irricana, Beiseker and Crossfield. 

"The price advantage of new multi-family apartment style living versus a single-detached home is a factor," said Louie. "There's some product coming out at $225,000 for a one-bedroom, 500-square-feet (unit). That affordability factor will keep the demand there high." 

As will the lifestyle factor, with some people preferring to spend less time maintaining their homes and being able to come and go when they like, added Louie. 

Single-detached starts declined by 15.1 per cent during October to 680 units compared with 801 units in October 2006. Year-to-date, single-detached starts are down 25.4 per cent from the record pace of last year. 

"Increased competition from the resale market and a record-setting performance in the previous year have contributed to a lower level of single-detached starts this year relative to the previous year," said Louie. 

As of Thursday, the Calgary Real Estate Board website was showing 5,353 active listings for single-family homes in the city. 

Many of the multi-family residential projects take longer to go through the approval process before construction, said Deep Shergill, president of the Calgary Region Home Builders Association. "All of those started much later than all of the single-family homes that we sold and got into the ground." 

He said builders hit the maximum capacity that they could deliver with single-detached homes and in some cases had gone beyond that. 

"Most of the builders had to cut back what they could sell at the same time the market cut back on what they wanted to buy. So, there's a little bit of an adjustment in supply and demand on the single-family side," said Shergill, adding multi-family starts range from the first-time-buyer range to the high-end with luxury downtown condominiums. 

Year-to-date, multi-family starts are 7.9 per cent ahead of last year, but the decline in the single-detached market has dragged total housing starts down, with a 13.7 per cent drop compared with the first 10 months of 2006. 

Provincially, starts in Alberta's seven largest centres totalled 3,220 units in October, up almost 22 per cent from a year earlier. Nationally, urban starts in October totalled 16,057 units, a decrease of about nine per cent from October 2006. 

The CMHC said the seasonally-adjusted annual rate of housing starts across the country was 219,500 units in October, down 22 per cent from 281,300 units in September. 

Despite the national decline, residential construction activity will remain strong throughout next year with the trend decreasing gradually between now and the end of the year, said Bob Dugan, chief economist at the CMHC's Market Analysis Centre. 

Beata Caranci, director of economic forecasting with the TD Bank Financial Group, said in a commentary that the new home construction market is not one "on wobbly legs" but home affordability is eroding across the nation, "especially in the western provinces where it has become commonplace to see double-digit annual price gains in the new and resale markets." 

*Housing Starts 
(Calgary Census Metropolitan Area) *

_Single Multiple Total _
October 2007 680 644 1,324 
October 2006 801 210 1,011 
% Change -15.1 206.7 31.0 
Year-to-date 2007 6,794 5,334 12,128 
Year-to-date 2006 9,105 4,945 14,050 
% Change -25.4 7.9 -13.7 

Source: Canada Mortgage and Housing Corp.


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## hkskyline (Sep 13, 2002)

*Downtown lifestyle craved *
27 October 2007
Calgary Herald

There are some cities in Canada that people love to hate, and then there's Victoria. 

Famed for its beautiful location on Vancouver Island and quaint atmosphere that brings to mind a simpler, more romantic time, Victoria is the city that Canadians love to love. 

And there's no doubt that people love to buy real estate in Vancouver Island's major city. 

Sales remain strong and prices continue a slow but steady climb, although perhaps not at the same rate as in the past, says Judy Gage, president of Royal LePage Coast Capital Realty in Victoria. 

"I sense it is starting to slow down a little bit, but our prices have not stagnated," she says. 

Victoria continues to attract many buyers from other regions of the country because of its mild climate and abundant outdoor activities. 

Many of these purchasers are people looking for a second home on the island, or baby boomers planning for their eventual retirement to Victoria. 

Just this past weekend, she hosted an unadvertised open house for a client, she says. Of the 10 groups who wandered in off the street, three were from Alberta. 

Condominium units are particularly popular with second home or retired buyers, she says. Developers have responded with numerous new projects. 

"Victoria and the whole downtown core have experienced growth in condominiums," says Gage. 

"People are craving the downtown lifestyle. There are (building) cranes everywhere you look downtown." 

Downtown Victoria is beautiful and home to famous attractions such as the inner harbour and Beacon Hill Park, she says. 

It is also quite pedestrian friendly for people who prefer not to have to drive everywhere, says Gage. 

The sky's the limit when it comes to condominium prices these days, with some high-end projects selling for more than $1 million. But there are still affordable condominium options in the city with prices starting from the mid-$200,000s, she says. 

Some baby boomers purchase a condo and then rent it out until they are ready to move to Victoria full-time, while others keep their suite vacant so they can use it on vacations and get used to the island lifestyle, she says. 

While Victoria has often had a reputation as the retirement capital of Canada, it also has a robust economy that is attracting young professionals and families. 

Gage says the high-tech sector is booming and computer-savvy young people are being drawn to the area because of the outdoor lifestyle. Winters are mild, yet there is still skiing on Vancouver Island at Mt. Washington. 

Dedicated golfers can enjoy their sport year-round, something Gage says many new Victoria residents make a point of doing just because they can. 

With solid demand for property coming from all areas of the market, Gage says she doesn't foresee any major changes to the local real estate market in the near future. 

Other than a few years ago when condominium prices spiked about 30 per cent in one year, real estate prices have been on a steady but not spectacular climb, she says, adding the market is not due for any kind of correction. 

"I definitely don't sense that our city is overpriced, given what we've got to offer," says Gage.


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## Canuck514 (Oct 12, 2007)

I am so happy that Canadians are starting to build smart cities that do not revolve around a vehicle. By building dense cities with extensive public transportation/bike lanes/walkways, we can simultaneously improve our quality of life. More people walking, biking, taking the bus, etc., will improve people's health and well-being while making cities more interesting and vibrant.

Sprawl equals unhappy and unfit people!


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## Czas na Żywiec (Jan 17, 2005)

Looks like EE but with more glass. :cheers:


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## Xusein (Sep 27, 2005)

Crazy pic. Is this near by the lakeshore?


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## hkskyline (Sep 13, 2002)

^ That's Queens Quay right by the Toronto waterfront.


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## Taller Better (Aug 27, 2005)

Here is a picture of it taken from higher up, a year or two ago. It is changing rapidly:


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## Xusein (Sep 27, 2005)

:eek2:


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## b13 (Jan 14, 2007)

^ oh thats just near the waterfront!!!! downtown Toronto is booming in all direction North, East, South and West


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## whitefordj (Feb 18, 2006)

Taller said:


> Here is a picture of it taken from higher up, a year or two ago. It is changing rapidly:


god! that looks wicked cool.


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## Xelebes (Apr 1, 2007)

Looks like Jasper West with twice the height, lol!


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## Nanaimo Bars (Nov 26, 2004)

I really enjoyed the article on Victoria British Columbia. You certainly do not hear about it as much as it should be mentioned. I think alot of the cities in B.C. are trying to use the Vancouver example for density in the downtown core to improve the lifestyle and urban feel. 
I do find it interesting about the real estate being on a slow but steady climb. When the prices of housing is second only to Vancouver.

It would be interesting too see some more pictures of Victoria and its boom as well as other Canadian cities.


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## Epi (Jul 21, 2006)

Taller said:


> Here is a picture of it taken from higher up, a year or two ago. It is changing rapidly:


Yikes, at first glance I thought it was Shanghai until I looked closer.


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## CrazyCanuck (Oct 9, 2004)

Canada is developing into a country of about ten mega regions where urbanity is king.


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## Spoolmak (Aug 4, 2007)

Taller said:


> Here is a picture of it taken from higher up, a year or two ago. It is changing rapidly:


I just drooled on my keyboard..


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## Quall (Feb 15, 2006)

That's an amazing picture.


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## CANAUS (Apr 4, 2005)

Toronto kicks butt.


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## Svartmetall (Aug 5, 2007)

^^ It's a bit of a shame that the large motorway bisects the apartment blocks though. I'll assume there is adaquate pedestrian access and noise barriers and the like on the highway to prevent noise pollution for those living in the apartments.


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## Canadian Chocho (May 18, 2006)

Ahh the Gardiner...an endless debate.


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## sumisu (Apr 29, 2006)

Svartmetall said:


> ^^ It's a bit of a shame that the large motorway bisects the apartment blocks though. I'll assume there is adaquate pedestrian access and noise barriers and the like on the highway to prevent noise pollution for those living in the apartments.


Assumptions: the most dangerous thing in the world! pedestrian adequate perhaps... no, not really actually. Sound barriers??? (i live in one of those condos... it's terribly loud)


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## AltinD (Jul 15, 2004)

I saw one building there going up almost a few meters from the motorway ramp. :nuts:


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## raggedy13 (Jan 25, 2007)

Here's a pic of some activity going on in Vancouver's Southeast False Creek neighbourhood. The area in this pic is rushing to get finished in time for the Olympics as the condos in the area will double as the Olympic Village to house athletes. Afterwards they leave and their buyers move in. Course not the whole city is this Dubai-esque but things are still booming everywhere else.









from flickr.com


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## Epi (Jul 21, 2006)

Svartmetall said:


> ^^ It's a bit of a shame that the large motorway bisects the apartment blocks though. I'll assume there is adaquate pedestrian access and noise barriers and the like on the highway to prevent noise pollution for those living in the apartments.


Actually that highway was built in exactly that form 35 years before almost all of those buildings were built. The buildings sprouted around the highway, not vice versa.

As well, all of those buildings (aside from 1 office building) are condos, not apartments. This means that people are paying good money to choose to live here. Hardly a bad thing.

As for the highway, there's no barriers or anything, but people still want to live there. It's not actually that bad, as most buildings are set far enough away (with parking on lower floors or facing the highway) that the noise isn't an issue.


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## pdxtex (Jan 3, 2007)

seems we are going through the exact opposite trend in the US. we have a condo glut and nobody is buying them!!!


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## Xelebes (Apr 1, 2007)

Taller said:


> Here is a picture of it taken from higher up, a year or two ago. It is changing rapidly:


_And we laughed and we laughed..._

Cookies for anyone who gets that reference.


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## AltinD (Jul 15, 2004)

^^ The traffic? :dunno:


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## Dimension (Aug 18, 2007)

My sister was telling me how some of her fellow workers were defaulting on mortgages on their condos. They were buying $400,000 condos while making $70,000 and having luxury cars and all that.

Whats that tall silver building? I like it


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## Xelebes (Apr 1, 2007)

AltinD said:


> ^^ The traffic? :dunno:


That would only be a clue.


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## oceanmdx (Dec 18, 2004)

Dimension said:


> My sister was telling me how some of her fellow workers were defaulting on mortgages on their condos. They were buying $400,000 condos while making $70,000 and having luxury cars and all that.
> 
> Whats that tall silver building? I like it


Where are they located?

That building is part of Concord Cityplace in Toronto.... a huge development of 20 highrise condo buildings.

http://www.cityplace.ca/


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## cpddavis (Apr 26, 2005)

Xelebes said:


> _And we laughed and we laughed..._
> 
> Cookies for anyone who gets that reference.


It wouldn't be a certain Gord Downie monologue done in the middle of 'Highway Girl' about a million years ago on a widely circulated bootleg?

"The rent's really cheap, but we don't get much sleep" or something to that effect.


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## crave (Feb 23, 2006)

ugly? cover up tha mass freeway and turn into civic/park spaces? 

:S


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## Xelebes (Apr 1, 2007)

cpddavis said:


> It wouldn't be a certain Gord Downie monologue done in the middle of 'Highway Girl' about a million years ago on a widely circulated bootleg?
> 
> "The rent's really cheap, but we don't get much sleep" or something to that effect.


Something like that. I think it was from a Tragically Hip track or something. But "Highway Girl" sounds about right.


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## LordMandeep (Apr 10, 2006)

trust me its better the highway is there...


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## Jaye101 (Feb 16, 2005)

I think the highway adds to the picture.


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## mr.x (Jul 30, 2004)

Dimension said:


> My sister was telling me how some of her fellow workers were defaulting on mortgages on their condos. They were buying $400,000 condos while making $70,000 and having luxury cars and all that.
> 
> Whats that tall silver building? I like it


$400,000? that's nothing. in Vancouver, $400,000 would buy you a 400 sq. foot condo. 


Vancouver, from Flickr.


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## KGB (Sep 12, 2002)

> trust me its better the highway is there...



Yes...as an important link in Toronto's "_ring_" of highways that surround the core, it is quite important. And yea, it actually looks better now snaking through a canyon of highrises, rather than how it looked originally, surrounded by nothing but massive railway yards and industrial warfs (quays in this case). I think the idea that it should be outright demolished has become far less popular now that the area is filling in. 

Not to say it's appearance shouldn't be enhanced to become a more pleasant component of this area. 




KGB


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## LordMandeep (Apr 10, 2006)

less and less to me it is seen as a barrier... 

It reminds me how in tokyo they had these elevated 4 lane highways running through high rises on all sides with no problems..


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## Dimension (Aug 18, 2007)

oceanmdx said:


> Where are they located?
> 
> That building is part of Concord Cityplace in Toronto.... a huge development of 20 highrise condo buildings.
> 
> http://www.cityplace.ca/


I they might live in City Place. I don't know, she didn't say where but it was in one of the many new condo towers.


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## Dimension (Aug 18, 2007)

mr.x said:


> $400,000? that's nothing. in Vancouver, $400,000 would buy you a 400 sq. foot condo.


$400,000+ actually. They decided to buy cars and jewelry instead of paying for their condos and where asking for raises almost every week. They wanted to live the "Canadian Dream" of owning a lavish condo and nice cars and things... But who wouldn't want that?


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