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Urbanation recently released the results for the second quarter of 2011, which reveal that the condominium market in the Toronto CMA (Census Metropolitan Area) has broken virtually every existing record. The company has been providing information and analysis on the Toronto condo market since 1981.
The most notable record is for quarterly condo sales: 9,455 units were sold in the second quarter of 2011, beating the previous record of 6,337 (set in the second quarter of 2007) by a whopping 35 per cent. Q2-2011 also set records for the number of active projects, active units, sold index price, unsold index price, new condo launches, units and projects under construction, and quarterly unit registrations.
“These results for Q2 are remarkable, but they will likely bring about more talk of the sustainability of the condominium market,” says Ben Myers, Urbanation Executive Vice President and Editor. “But it’s clear that the market is not experiencing rapid increases in pricing, which is the hallmark of a real estate bubble. The market is very healthy, as condominium resale activity remains strong, and results from our new UrbanRental report show that condominium rents have improved over the first quarter.”
There has also been some concern around the high level of investor activity in the market, but Myers claims that the ‘occupancy intentions’ of buyers should not be an issue so long as the resale market continues to absorb the higher priced newly registered units and condominium rental rates remain strong.
Other stats released by Urbanation include a 9 per cent increase in new condos sold over the past 12 months (24,732 as opposed to 22,654 sold in 2007); a total of 39,196 condo units under construction in the Toronto CMA in 153 projects in Q2-2011, a high watermark for Toronto; and a record low of only 16% of 78,142 units in the 306 active condo apartment projects unsold at the end of the second quarter.
In addition, there have been increases in index prices for both new and resale condo markets; a 4.3 rise in unsold pricing in the new condo market from $529 per square foot (psf) in Q2-2010 to $552 psf in Q2-2011; and a 5.7% increase in the resale index price, from $370 psf to $391 psf.
Urbanation attributes the record-breaking results of Q2-2011 to the influx of over 9,000 new units from the launch of 44 new projects. Interestingly, the new openings in the ‘905’ region had a higher absorption rate than those in the ‘416’ area. “The 905 has experienced blowout sales successes in Q2, as did several of the 30 openings in the 416”, Myers stated.
The resale condo market had a record 7,815 units registered in Q2-2011, almost as many as the three previous quarters combined, leading experts to predict that this will also be a record-breaking year for the resale condo market.
Urbanation is predicting 25,000 new condo sales and 17,000 resale transactions for 2011.
Don’t miss out on the booming condo market! This is the time to rent or buy!
Posted August 6, 2012.