Guru: There is no Condo Glut in Toronto
Toronto condo market meeting demand: expert
KELLY LAPOINTE
The perception that there are a lot of condominium units sitting fallow in the Toronto Census Metropolitan Area (CMA) is simply not the case, says the director of market research at Urbanation.
“In terms of unsold inventory, the market still hasn’t strayed from historical levels of unsold. In Q3 we actually had 20 per cent of the market that was unsold, that’s really unchanged from where it’s been for a while. It’s a larger market, it’s just simply the same shares haven’t changed,” said Pauline Lierman speaking at Construct Canada’s session “Condominium Market in Toronto: Where is it really heading?”
Overall, there are about 850 units in the market in current registered projects that are unsold in the Toronto CMA.
“Eight hundred and fifty units in a market that is over 94,000 units in size and across a city of over 2.5 million just in Toronto, not even including the suburbs of the CMA, that’s not a lot of units that are actually sitting there unsold.”
The downtown market is only 15 per cent unsold, compared to a little bit higher levels of unsold inventory in areas like Richmond Hill, Markham and Vaughan, which has seen more development activity recently.
About 10 years ago, the condominium market was about 30 per cent of the area’s new homes, now it is between 50 and 60 per cent of the actual sales and start activity each year in the Toronto CMA. The growth is attributed to condos being much more affordable than detached homes, which have had fewer MLS listings recently, driving up the price tag.
The rental market is setting record activity as more people are moving into the city, especially in the 25 to 34 year old age group. This demographic is not necessarily at the point where they are ready to buy, especially given last year’s reduction in the mortgage amortization period from 40 years to 25.
The reality is Toronto has a really tight rental market as the purpose built rental market is a “very small” fraction of the market.
“In order for it to come down we actually do need to have supply. Our vacancy rates are nowhere near where they should be right now in terms of demand for people going into the city. That needs to be serviced,” said Lierman.
A little over 33,000 units are scheduled for next year, but Lierman said that is going to be closer to 20,000 units.
“Once we get past this point where we’ve seen all this record construction occur, we’re actually going to see a bit of a lag and that has a lot to do with the fact that developers have pulled back in the product they’re putting into the market that’s new.”
So far this year, 41 new projects have launched, compared to 71 at this time last year. This year has not seen much difference in terms of absorption of new units that come into the market. Of those 41 projects launched this year, about 41 per cent of those units were sold in the first quarter of their opening, compared to 44 per cent last year, said Lierman.
Twenty-six per cent of new product in the third quarter went into the rental market, versus one or two per cent being resold into the market. She said the investor model is coming into play in the rental market.
“What that has done is actually pushed up the range of rental volumes…We’re seeing more premium product come to the market,” she said, pointing to the completion of projects such as the Shangri-la hotel and residences and the Four Seasons.
Read More http://dcnonl.com/
Well, condo is still an excellent bet, so said the guru.
What are you waiting for … Buy.
Listings for Thu Dec 19
Open Map
C2798055 – M3H – 31 MONTFORD DR Toronto, Ontario – $ 1,098,000
Price Change. Dec 19: $ 1,098,000 Dec 10: $ 898,900
**Very Rare 100 Foot Wide Lot On Child Safe Cul-De-Sac** Lots Of **Potential** Prime Lot In Willowdale. New Kitchen, New Bathrooms, Freshly Painted, …
C2801632 – M6A – 21 MARQUETTE AVE Toronto, Ontario – $ 636,000
***Attention First Time Buyers***. Close To All Amenities,Steps To Ttc,Schools,Shopping. W/O To Large B/Yard Private Street, Separate Entrance To Bsmt …
C2801692 – M2M – 19 MICHIGAN DR Toronto, Ontario – $ 1,350,000
Premium 80X129 Lot !!! Highly Demanded, Rarely Offered Lot In The Prestigious Willowdale Neighbourhood. …
C2801753 – M4G – 21 BURKEBROOK PL Toronto, Ontario – $ 1,195,000
Beautiful, Spacious Executive Townhouse In Kilgour Estates. Private Elevator; Hardwood Floor Thru-Out; Stainless Steel Built-In Appliances; Oversized …
C2801974 – M2J – 66 WILD BRIARWAY Toronto, Ontario – $ 397,000
Bright And Sunfilled In A Great Neighbourhood, Desirable North York Area. 4 Large Bedroom, One Of The Biggest End Unit, Well Kept Nice And Clean, Move In …
E2784274 – M4M – 27 ALLEN AVE Toronto, Ontario – $ 599,900
Price Change. Dec 19: $ 599,900 Nov 14: $ 699,000
Rarely Offered 33 Ft Frontage Detached Home In Riverdale. Private Drive For 3 Cars. Attention Builders And Renovators. Opportunities Galore: Renovate, …
E2801627 – M1T – 3847 FINCH AVE E Toronto, Ontario – $ 499,000
Great Opportunity To Own A Great Investment Property On Finch Ave. High Demanding Kennedy & Finch Agincourt Location. Steps To Ttc, …
E2801655 – M4B – 491 DAWES RD Toronto, Ontario – $ 475,000
Top To Bottom Renovated, Just Move And Enjoy! Separate Entrance To Basement With New Kitchen, Two Bedrooms And A Full …
E2801662 – M1M – 91 MUIR DR Toronto, Ontario – $ 169,900
Location! Location! Prestigious Guildwood Area. Very Bright Three Bedroom Plus 2 Washrooms Corner Town House With …
E2801676 – M1B – 1775 MARKHAM RD Toronto, Ontario – $ 375,000
Excellent Location!! Beautiful Layout With Lots Of Upgrades. All Stainless Steel …
E2801706 – M1V – 75 MCCOOL CRT Toronto, Ontario – $ 398,000
**Stunning Well-Kept House Located On Prime Steeles/Midland Location**Totally Renovated**Gleaming Hardwood Floor Thru-Out**Gourmet Kitchen W/Breakfast …
E2801737 – M1E – 15 GUILDWOOD PKWY Toronto, Ontario – $ 280,000
Amazing Location Guildwood! Move In Condition. Spacious Unit, Functional Layout, Upgraded Brand New Stainless Steel Appliances, Large Eat In Kitchen, …
E2801817 – M1B – 58 WAYFORD CRES Toronto, Ontario – $ 359,900
Bright Spacious 3 Bedroom With Attached Garage Semi-Detached Home. Finished Bsmt W/Separate Walk-Out Entrance To Private Fenced Backyd. New Oak …
E2801850 – M1R – 76A WAYNE AVE Toronto, Ontario – $ 989,000
A Fabulous Classic Executive New Home W/Stone Front On A 41.27 Ft X 130 Ft Lot. 4+2 Bedrooms & 5 Washrooms. Approx 3200 Sq Ft Plus 1600 Sq Ft Finished …
E2801870 – M1L – 8 LANDRY AVE Toronto, Ontario – $ 439,900
Beautiful Renovated Raised Bungalow ,Bright Interior Nice Deep Lot With Large Garage ,Ample Parking And Long Driveway …
E2801876 – M1B – 90 WINGARDEN CRT Toronto, Ontario – $ 215,000
A Great Started Home! Corner Lot! No Neighbours In Front! Quiet & Nice Neighborhood! One Of The Best Prices In The Area! Show Great! Open Concept Living …
E2801882 – M1W – 2051 BRIDLETOWNE CIRC Toronto, Ontario – $ 359,900
Welcome To Beautifully Upgraded Scarborough Home! Spacious 3Br + 1 Townhouse In A Convenient Location . W/O Basement. Fenced Yard. Very Clean & Bright. …
E2801895 – M1P – 49D CARRERA BLVD Toronto, Ontario – $ 520,000
I M M A C U L A T E 3 Level Freehold Semi-Detached House In Highly Desirable Are. Open Concept!! …
E2801912 – M1V – 1881 MCNICOLL AVE Toronto, Ontario – $ 369,000
Luxury Townhouse Built By Tridel, Great Location In High Demanding Scarborough Area. Well-Mainted, Bright & Clean. Approx 1900 Sq.Ft. 3 Spacious Bedrooms …
W2795406 – M9W – 16 REXDALE BLVD Toronto, Ontario – $ 164,900
Price Change. Dec 4: $ 159,900 Dec 19: $ 164,900
A Showstopper In The Heart Of Mississauga City Center! This 2 Bedroom Plus Den Unit Has A Great Unobstructed View Of Downtown Toronto And The Lake! Big …
W2801686 – M3L – 1 ANCHOR DR Toronto, Ontario – $ 459,900
Situated On A Safe & Quiet Court Just Off Sheppard West Of Keele. This Recently Refreshed Home Is Perfect For A Growing Fam. Many Long Time Residents …
W2801707 – M6S – 93 THE QUEENSWAY AVE Toronto, Ontario – $ 509,000
Renovated Sunny South Corner End Unit.Large 3 Bed 2 Bath W/ Stunning Views In A Quiet Courtyard Setting. Rarely Offered 1400 Sqft Interior + 350 Sqft …
W2801734 – M9B – 10 DEANECREST RD Toronto, Ontario – $ 539,900
3 Bedroom Brick Bungalow On A Premium Fully Fenced 43X150 Lot In Prime Location West Deane Park. Great Opportunity To Own A Family Home In Desirable …
W2801762 – – $ 449,000
You Really Can Have It All! Space, Location, And Convenience!!! This Massive Home Offers 4 Bedrooms, Eat In Kitchen, Plenty Of Storage, High Ceilings …
W2801789 – M6N – 870 JANE ST Toronto, Ontario – $ 249,900
Very Well Kept 2 Storey, 2 Bedroom Condo Townhouse. Lovely Open Concept. Patio Area With Gas Line For Bbq And Overlooking Beautiful Smythe Park. …
W2801814 – M6N – 132 BRICKWORKS LANE Toronto, Ontario – $ 427,900
Great Open Concept Townhouse With Spacious Layout And Freshly Painted. Located In The Trendy Junction Area. Approx 1367 Sq.Ft. (Above Grade As Per Mpac). …
W2801946 – M1W – 234 RICHARD CLARK DR Toronto, Ontario – $ 489,000
Large Bungalow In The Heart Of North York Area In Transition, Custom Builds And Renovated Properties Surround This Home, Large Eat In Kitchen …
W2801959 – M9L – 92 CABANA DR Toronto, Ontario – $ 439,000
Nicely Maintained Well Kept Raised Bungalow In Move In Condition. Close To All Amenities. Home Has Separate Entrances, 2 Front Entrances + A Sliding Door …
W2801982 – M9C – 18 PERMFIELD PATH Toronto, Ontario – $ 299,000
Attention Renovators And Handymen! Solid 3 Bedroom End Unit Townhouse Condo …
Comments
Post a Comment