Developer Castlepoint Numa has cancelled the 168-unit condo development, sending all buyers refunds of their deposits. When pre-construction condos are one of the only few affordable options, cancellations can be dream-shattering news to hopeful buyers. Since 2012, 23 projects have failed, mostly as a result of zoning issues or rising costs that make a project commercially unfinanceable. The Museum Flts buyers will be given priority if a new project will replace the development, which is speculated by many stakeholders to happen. Despite having priority to be the first in line, the buyers will still have to pay more as the units that went for $600 per square foot last year are now going for $830 per square foot.
The cancellation of Museum Flts was particularly surprising as it was positioned as a landmark project and there were high hopes for this new community that was forming in the Junction Triangle. People were very excited to see the development come to life, and many were happy with the relatively affordable price. Buyers are distraught that they are now priced out of the market while the developer held their deposits for over a year. It is disheartening to see so many people negatively impacted by the cancellation and to witness the real vulnerability of home buyers surface. The development industry is a balance between the municipal and provincial governments, the builder, the buyers and the lenders and all must hold their stable ground for a project to be successful.
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