“Not only were there some big transactions but we also had a record number of deals,” said Richard Vilner, commercial real estate manager of RealNet Canada in a National Post article. “There are a lot more condominiums coming, if you thought there was a slowdown there.”
His comments come as no surprise given the push for Canadian real estate by both domestic and foreign investors, including first-time homebuyers.
Residential land purchases, in fact, made up 27 per cent of the $3.6-billion spent on property in the second quarter, beating out all other segments.
What’s more, a record 143 residential deals were signed, sealed and delivered, with more development expected.
Earlier this month, Urbanation released a report showing a spike in rental demand across Toronto, up 22 per cent.
“Rental demand in Toronto continues to defy expectations,” said Shaun Hildebrand, Urbanation’s senior vice president, said in a release to REP. “Absorptions have grown in tandem with record levels of condo supply and rents have proven remarkably resilient.
“It’s actually surprising there hasn’t been more action on the purpose-built rental development front.”
The average condo lot sale price in the second quarter across the Greater Toronto Area reached $64 per buildable square foot, double the $30 it was 10 years ago.
In a report from RealNet last year, 2014 was a record year for new condominium completions in the GTA, with 25,571 units finished, said George Carras, president of the RealNet Canada Inc.
And the momentum continues to build, driven by low interest rates, which he believes has sent prices to new levels – an expression of consumer confidence.
“Risk is less of a factor in traditional, detached homes under construction,” Carras said in a recent column. “But for folks buying new condominiums in pre-construction, the price today is reflecting a future closing price that could be three, four or perhaps five years from now.”
Residential land sales continue to flourish in Toronto’s scorching housing market as condominiums are leading the charge among buyers looking to enter the market before further price climbs.