Urbanation’s recently published market results found that a total of 4,753 new condos were sold during the third quarter of 2014, representing the third best summer for the market, behind 2011 and 2007, and a 53% year-over-year increase from a 10-year low in 2013.
These figures signal a light at the end of the tunnel, two years after finance minister Jim Flaherty tightened up the rules around insured mortgages for condos, which cooled sales for a while.
Matt Elkind of The Condo Store Realty, says: “We had a lot of negativity in the marketplace when Flaherty changed the condo rules. It wasn’t that sales were bad, there just weren’t as many projects coming to market.
“Developers put projects on hold and weren’t as aggressive in launching new projects because they were worried about these changes.
“But they have seen consistently strong responses from investors. It’s indicative of a very buoyant market where the demand for good product is extremely strong.”
The report also found:
- The share of total active condos in development that have been pre-purchased has reached a record high, with 104,081 pre-purchased units actively in development in the city, a share of 84% of Toronto’s condo market.
- The number of unsold units in the market across all stages of development (pre-construction, under construction and recently completed) fell by 11% during the quarter to 16,743 units.
Shaun Hildebrand, senior vice president of Urbanation, says: “Sales this past summer reaffirm that the new condo market in Toronto is on track for one if its best years on record.
“There is still quite a bit of pent-up demand that came out of the slowdown last year. Should market confidence continue to hold in spite of the recent turmoil in financial markets, this sales momentum will carry into the final months of 2014 and early 2015.”
Condo investment in the Greater Toronto Area has reached a level not seen in two years, according to market statistics.