Collingwood has become a burgeoning epicentre for real estate activity in Ontario, thanks to its four-season beauty, accessibility to recreational opportunities, and great shopping and dining options. To meet this increased demand for real estate, construction has been on the rise, until recently, however, when the Collingwood council voted to suspend any new developments.
New real estate development was paused in Collingwood until 2022 following a 6-3 vote by the council prohibiting any new construction. Any new construction projects that already received a building permit from the town can continue. Renovations are also allowed as long as the intended new use of the altered building will not change its reliance on water and wastewater resources.
The reason behind this new moratorium was an overtaxed water treatment plant that was running out of the capacity to handle any new developments. If nothing changes, the plant can only produce enough water for 1,941 new single-family units (outside of developments with existing building permits). Even then, the town’s water treatment plant could become overtaxed in the winter because it takes more work to treat cold water with chlorine.
In the meantime, the town of Collingwood has initiated plans to expand its water treatment plant. An additional chlorine tank could be installed as early as 2023, and the expansion should be finished near the end of 2025 or early 2026.
How this suspension on new development in Collingwood will affect the real estate market is yet to be seen, but with increasing demand for real estate in the area, it could have far-reaching effects. To learn more, please don’t hesitate to contact us.
