Proximity to public transit is a major factor that condo developers look at when choosing where to build. As the GTA continues to grow and push outwards, developers are always trying to predict or influence where the transit lines will expand as well.
The government has noticed this, as they’re not potentially looking to them to fund future subway line expansions. Toronto’s transit system has many projects in the works, some more realistic than others. However, as the provincial government moves to take over the management these future projects are now up in the air.
One project in question is the Scarborough Subway Extension. The project has been controversial from the start, as many objected to the single stop expansion that would require $3.35 billion.
Now, the Ontario government is proposing a privately funded model to cover the cost. They’re hoping to leverage the private sector, promising air rights and deals to developers that invest in the expansion. The government is also scrapping the one-stop plan previously approved and plans to replace it with a three-stop plan, which would cost closer to $4.5 billion.
It still remains to be seen whether this project will continue or get approved. There are other more urgent transit issues the Ontario government will have to address once they take over first.
However, if they go through with private funding it could provide a lucrative opportunity for condo developers. The chance to influence where stations or condo projects are located is invaluable in the GTA. Many residential buyers cite proximity to public transit as one of the most important factors when looking and most are willing to pay more. Time will only tell how it plays out.