Market News: More condo sales in 905

Market News: More condo sales in 905

Market News: More condo sales in 905

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Lisa Van de Ven, Special to National Post
Friday, Nov. 9, 2012


Condos circle Celebration Square in Mississauga, Ont. Aaron Lynett / National Post

A market in flux. That’s how Ben Myers, vice-president and editor of Urbanation, describes the state of Toronto’s new condominium market. The market research firm released its third-quarter data for 2012, showing a 30% decrease in condo sales from the second quarter throughout the Toronto Census Metropolitan Area. Specifically, 3,317 condominium suites were sold through July to September, and only five projects were released in the city of Toronto during that time.

“Up to 50% or more of sales in any one quarter can sometimes be attributed to new project launches,” Mr. Myers says. “So if you have fewer project launches, then overall sales are going to be way down. That’s essentially what happened in the third quarter.”

There’s a reason developers are holding off. Those projects released in the 416 “weren’t particularly successful,” Mr. Myers says. In the 905, though, a combination of low pricing and locations with pent-up demand led to better sales overall. “The 905 launches were actually very successful. They were above their typical absorption rate,” he adds.

Another piece of good news? With fewer sites released, Urbanation also reported a decrease in the amount of unsold inventory left on the market — from 18,123 units in the second quarter to 17,182 units in the third, representing just 20% of the overall market, compared to a 10-year average of 22% .

The Building Industry and Land Development Association (BILD) reported similar results as those found by Urbanation — at least in terms of the low number of project launches and slow overall sales — in their recently released September new home and condo sales analysis. Using numbers accumulated by market research firm RealNet Canada, they reported 987 high-rise sales and 1,083 low-rise sales throughout the month, for the second-lowest September in 13 years. “Developers are showing some discipline and saying ‘We don’t all have to open at once; if we’re not forced to open let’s wait for consumer confidence to pick up,’ ” says BILD chair Paul Golini Jr.

Year to date, 2012 is down from 2011, but neck and neck with 2010, according to the RealNet numbers, which showed 26,392 sales so far, compared to 26,386 sales at this time in 2010. Breaking that down, high-rise sales are 19% above the long-term average, with 14,569 sales in total — the third highest on record. Low-rise sales, though, are the second lowest on record, with 11,823 sales so far this year. “We know there’s been a shift in the last few years from low-rise to high-rise,” Mr. Golini says. “I think if we had more available land in low-rise we’d probably be selling more low-rise at this point. The bottom line is, high-rise still presents the best option when it comes to affordability and a first-time buyer wanting to have his or her first home.”

Posted in: Homes Tags: Condos, Market News

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


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