15 Hard Facts – Toronto’s Q3-2012 Condo Market : TheRedPin Pulse

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15 Hard Facts – Toronto’s Q3-2012 Condo Market

Toronto skyline. Courtesy Wikimedia Commons.

Toronto is a constantly evolving beast when it comes to the real estate market. Sourced from the lastest report from Urbanation – Canada’s leading condominium market research company since 1981 – TheRedPin has put together 15 hard facts about Toronto’s Q3 Condo Market.

In a nut shell, the condo market has shrunk since last quarter, reporting only 3,317 new condominium apartment sales, a decrease of 30% since Q2. Q3 also brought a record-high lease-to-listings ratio, decline in the resale condo transactions and an increase in the average unsold unit cost.

15 Hard Facts about Toronto’s Q3 Condo Market

  1. “Just five projects launched in Toronto in Q3-2012, as developers choose to review their pricing assumptions and unit mix.” – Ben Myers, Urbanation Executive Vice President
  2. Average unsold unit in the Toronto CMA offered at $573 per-square-foot (psf) in Q3; 2% increase year-over-year
  3. Unsold pricing in the former City of Toronto rose from $668 psf to $670 psf year-over-year
  4. 5.5% decrease in unsold inventory from 18,123 units in Q2 (a CMA record high) to 17,182 units in Q3
  5. In the Toronto Census Metropolitan Area (CMA) there were 3,317 new condominium apartment sales in Q3, a decrease of 30% from Q2.
  6. 20% of the 86,108 units (341 projects) unsold; share of unsold inventory in the Toronto CMA remains below the 10-year average of 22%
  7. Condominium apartment construction outpaces completions for the 8th consecutive quarter; units under construction in the CMA have set another record high at 207 projects and 56,336 units
  8. In 2012, average project construction – from sales launch to occupancy – took 3.85 years compared to 2.68 years in 2003
  9. Urbanation’s UrbanRental report indicates a record-high lease-to-listings ratio in Q3
  10. Transactions in the resale condo market fell 32% quarterly in the Toronto CMA from 5,050 in Q2 to 3,413 in Q3
  11. Pricing on a per-square-foot basis remained flat in comparison to Q2 at $407 psf while average unit size traded and the average end-selling price decreased, 910 sf to 891 sf and $370,000 to $362,000 respectively.
  12. Resale transactions for units priced over $400,000 fell 40% compared to last quarter; 38% quarterly drop in units traded over 1,000 sf
  13. Just 10 projects, or 2,035 condominium units, registered in Q3
  14. Decline in resale listings quarterly from 10,163 in Q2 to 9,032 in Q3
  15. More than half of the 56,336 condominium units under construction are expected to be completed next year, which could add as many as 14,000 new condominium rental units to the Toronto CMA via private landlords; a 25% increase in condominium rentals in the Metropolitan Area

Source: Urbanation Q3 Report

Brandon Lee Cell 416-471-0353, HL/Bayview

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