Is There A Premium For Buying A Condo On A Higher Floor?
To put it plainly, yes there is a premium.
When purchasing a pre-construction condo, you can expect the higher the floor you buy on, the higher the price will be as well. There is no standard price increment per floor, so the price may vary builder to builder. However, most builders tend to stay around the $1,000/floor range. The range of price per floor can fluctuate from $750/floor up to as high as $2,500.
With this example below of a standard industry price of $1,000/floor, we can illustrate the price difference between a condo unit on the 5th floor of a building, versus the premium increased price of the same model on the 25th floor.
5th Floor ‘Model A’ suite is $219,000. 25th Floor ‘Model A’ suite is $239,000.
Here is an example of a price list from a past new condo launch. Notice the ‘Starting Price’.
It is important to note that when buying or investing, higher floors generally have a better resale value, and attract more buyers. Although you may pay a premium for a higher floor, this may work to your advantage when selling in the future.
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