Toronto Condo and Real Estate Blog

By Desi Auciello, President of the Greater Toronto Home Builders’ Association-Urban Development Institute

“The trend for highrise sales is high, with no sign of a turning point,” writes housing economist Will Dunning in the latest edition of his monthly Housing Market Digest.

Dunning’s digest was issued immediately after the GTHBA released new home sales statistics for July. Those figures revealed that what I call “the great Toronto condo craze” continues, but with somewhat of a twist.

Let’s look at the big picture first.

According to RealNet Canada Inc., 3,096 new homes and condos were sold in the GTA in July. Total sales declined by 8% compared with July 2005; however, highrise unit sales (condo apartments, lofts and stacked product) were up 8%. The overall decrease was as a result of an 18% drop in low-rise unit sales (single-detached, semi-detached and townhouses).

In the first seven months of the year, the market was off by 5.8% compared with the same period in 2005. But highrise unit sales are up 2% year-to-date. The decline in total sales is due to an 11% decrease in low-rise sales.

The highrise and low-rise condo sales curves have been trending in different directions for quite some time now, resulting in an ever-increasing highrise condo market share of the total market — 45% of all sales through the first seven months of the year.

Here’s where it gets interesting. While highrise sales were up 8% in July, they were up an astounding 260% in Peel Region and 215% in York Region. Meanwhile, highrise sales slipped 32% in the city of Toronto.

And whereas Toronto typically accounts for 75 to 80% of monthly highrise sales, its market share declined to 49% last month as condo sales took off in the suburbs.

Are these numbers an anomaly? Partly, but not totally. The huge sales spikes are due to some high-profile new project openings in both regions.

In York Region, the Downtown Markham project made a very successful debut in July. Here is a 4,000-unit development with not a single detached home in the entire master plan (see my column “Whatever happened to the single family home?” at http://www.new homes.org/articles.asp).

In Peel Region, the exciting “Marilyn Monroe” buildings by Fernbrook Homes and Cityzen Urban Lifestyle hit the market with a bang. You know times are changing when 56- and 50-storey buildings hit Mississauga.

While these new project openings can skew the market in any given month, there are some larger trends and forces at play that suggest we are going to see more highrise condo development in the 905 regions.

First and foremost is the recently passed Greater Golden Horseshoe growth plan, which calls for 40% intensification in the built-up areas of each town and city, as well as much more intense development in the growth areas of those same towns and cities.

Secondly, while condos are the affordable option, they are much more affordable in the outlying areas, as are other housing types.

Meanwhile, as our population ages, the move-down buyer is looking for housing within the same community, and downtown Markham and the Mississauga city centre have all the amenities they are looking for.

I believe we are seeing the front edges of a gradual shift toward intensification of our suburban cores, although it won’t be quite as dramatic as we are currently witnessing.

The city of Toronto will continue to represent the solid core of the condo market, particularly as the waterfront lands come on stream. However, the 905 regions are coming on strong.

By the way, Dunning has upped his highrise condo sales forecast for the year by 40% compared with his original forecast as “the great condo craze” continues.

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The neighbourhood is a great place to hang out, with an eclectic mix of old and new, all styles all tastes and all kinds of interesting things going on.

Known for its cool styles and hip fashions, shops boasting chic, contemporary designs and old-world merchants, the Fashion District, spilling over from Queen West, King West, the Theatre District and the Entertainment District, is part of Toronto in flux, just making the change from garment factories to culture factories.

Along Spadina from Queen to Wellington Street and branching side streets are lined with great converted factory spaces, fabric shops, condos, art galleries and independent clothiers that wear the title Fashion District quite smartly. But the Fashion District was established long before the high-healed, designer sunglassed, urban chic moved in.

The funky warehouse lofts are true conversions, original factory spaces that were home to Toronto’s garment industry; furriers, textilers and clothiers of all varieties. Hence the title Fashion District, to honour the decades of garment production that established the neighbourhood, and not named for the coutured trendsetters that are moving in; though residents are keeping the legacy alive, and looking good doing it.

Over the years, the Fashion District has changed, and businessmen, like Herman Miller have seen it happen rapidly. Herman Miller worked in the Fashion District for over 60 years. His shop, Windsor Bridal, was on the northwest corner of Spadina and Richmond for decades. But in 1999, Herman had several reasons for moving his shop out of the neighbourhood, mainly as a response to the evolving direction of the neighbourhood.

In the Fashion District’s heyday, the streets were lined with clothing-related businesses and everyone was in the  industry. Spadina Avenue was, until the past decade, a wide, badly potholed road without a streetcar lane down the middle. Street parking was a wild disarray of angled cars and trucks in the curb lanes. Parking lanes, loading bays and open allies were necessary to keep businesses in motion.

As the garment industry began relocating north of downtown, it became a mass exodus. Not only was it getting harder to move shipping trucks around, but the businesses that were disappearing thinned out the the draw for consumers and shoppers. Spaces were taken over by dot commerce, designers, artists and condominium projects. The downtown core’s real estate became too valuable as office and living space, and too inconvenient to maintain factories.

As the Fashion District continues to convert to shops, cafes, clubs and condos, the area is becoming the place to be - living, working, and playing. Many of the condo owners traded a commute for a walk to work. Living in the heart of the city offers more convenience than just a shorter trip to work; it changes a person’s lifestyle. Just down the street is the SkyDome, so catching a game or heading to a concert doesn’t need to be a planned effort, but becomes a spur of the moment opportunity.

Simply everything is close by - movies, clubs, the gym, a driving range. Friends that live in the suburbs want to stop in every time they make their way down to the city. There’s no need to drive a car because travelling by TTC and cabbing around the city is faster and can works out to be more cost-effective than a car, and its ever-rising insurance, parking and gas costs.

Living in the Fashion District can also add finesse to anyone’s wardrobe. Constantly passing window displays can be quite tempting, and constantly seeing the styles being set, before they come into the shops in the mall can result in a very trendsetting cache.

Herman’s son and business partner bought and moved into the District Lofts since the time the business had moved out of the neighbourhood. He knows the area well. He loves the area. He’s been part of the business and social community for much of his life and has seen the transformation occur.

He describes the Fashion District as tamer version of its former self. The area used to be a lot more edgy, a place where a tattoos, piercings and PVC clothing really used to turn heads. Now it’s so common to see purple haired people that nobody ever does a double take. It is a great place to people watch and everybody can be as individual as they’d like. There really is a lot of self expression going on.

He finds it ironic that despite the multitude of visual expression that goes on in the Fashion District, his condominium still has a rule on its books that requires all window treatments to appear white from the exterior to maintain uniformity and an appropriate looking facade.

Another odd thing he found when he first moved into the Fashion District was that it was badly in need of a grocery store. Transition took a while. A strong commercial presence for so many decades, the transformation to residential lagged until enough commercial space was converted to residential. But with all of the new condos nearing completion and becoming occupied, residential amenities are apace with the needs of a growing residential population.

The 50,000-sq.-ft., 24-hour Dominion is just a streetcar ride along King Street and services many of the young developing communities along the way. There is still the old-world friendliness and charm of Kensington Market and The St. Lawrence Market, just outside the community but still close by; each offers an experience all its own.

Eating at home is one thing, but downtown living has the temptation of dining out as a way of life. The Fashion District is surrounded by what should rightly be called the Epicure District so you can either make dinner or make reservations. Queen Street, King Street, and Spadina Avenue are full of some unbelievable restaurants.

China Town lines Spadina with every variation of Asian cuisine available, while Jewish delis, Thai restaurants, French, East Indian, West Indian, fusion, late-nite and 24-hour, hot dog vendors, pub style fare, sandwich counters, fast food joints, Middle-Eastern dining rooms, greasy spoons, cheapie, expensive, impress-a-date places, groovy diners, and health food specialists are all around - just to mention a few options.

Elements of the garment trade still remain in the Fashion District. Stock in the old shops and collections offered by wholesalers is unique. The entire experience is different when you buy from somebody who has been in the same place, making and selling the same things to generations of the same families.

But, like Herman Miller’s store, many are moving on, relocating, retiring, ending leases and making way for a new incarnation of the Fashion District. Yoga spas, pet supply boutiques, specialty coffees and designer everything are infusing the Fashion District and giving new meaning to the old neighbourhood name.

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Award-winning Brandy Lane Homes has just celebrated groundbreaking at Loggia - its landmark condominium at Islington and Queensway in south Etobicoke. Construction is moving ahead on both of the striking buildings that comprise this highly successful community. Prices start from just $159,990 (including up to $29,200 in extras depending on the plan), which means that anyone from first-time buyers to empty-nesters can realize their dream of affordable luxury in this hot Downtown West locale.

Just 15 minutes from downtown Toronto and close to Lake Ontario and the Waterfront Trail, this up-and-coming neighbourhood offers tempting shopping, restaurants, recreation and entertainment venues. Loggia provides an appealing residential component, and is part of Toronto’s Official Plan “Avenues” vision that calls for the transformation of existing areas into new urban centres.

Residents in Loggia’s established neighbourhood also have TTC at their doorstep, and can walk to numerous amenities.

Sales have been brisk. Loggia buyers are like-minded people who know real value when they see it, and who have bought with the intention of living in their condo. You don’t need to worry that a group of investors owns half the floor - your neighbours are owners like you.

Fabulous Flexibility

Architecturally, Loggia’s distinguishing characteristic comes from its name, which is the Italian term for the outdoor garden rooms that dot its European-style facade. The two terraced buildings are stepped back to allow for this design feature. Brandy Lane also offers “Flexi-Space” here - purchasers have the option to select a layout that accommodates either a European layout that features a contemporary environment, or a neo-traditional Cosmopolitan version.

Adding to the value, Loggia purchasers enjoy the exclusive use of the Loggia Club. This extraordinary amenities centre will be suspended between the two condominium towers to maximize views and natural light. Imagine doing laps in the sky pool, or soaking in the hot tub adjacent to the outdoor fireplace, gazing up at the night sky through an open roof after a long day at work. The Loggia Club also includes a fitness studio, change rooms, a dry sauna, as well as a party room/lounge that features skylights and an extended balcony.

The 774-sq.-ft. (includes a 95-sq.-ft. loggia), one-bedroom Biancavilla is just one of three exquisite new designs that purchasers are snapping up at Loggia. This suite’s European layout offers a den-dining-media room with a wealth of possibilities. The open concept Great Room overlooks the spacious loggia through huge expanses of glass. A moveable chef’s island in the gourmet kitchen allows owners to reconfigure the main space for entertaining. The generous bedroom features a sliding barn door, and a window opening onto the great room. Adding panache in the bath, a semi-exposed sink and Euro-style vanity are both functional and funky.

In addition to condominium suites, choices at Loggia include a select number of two-storey Courtyard Town Loft designs that encompass a patio walkout backing onto a landscaped interior park with pathways.

All designs offer parking, five appliances, and dazzling designer finishes including a choice of concrete feature walls; polished concrete floors; luxury carpeting; upgraded pre-finished hardwood flooring in the living/dining room area; upgraded ceramic floor and wall tiles; and a granite breakfast bar (as per plan).

Loggia purchasers are enthusiastic about the new community they have chosen to call home. There is still time to become part of the Loggia family. Available choices in both phases at Loggia include one, two and three-bedroom suites priced from $159,900 (which can translate to $983.50 per month all in).

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Contact the Jeffrey Team for more information