Condo sales rising high in 905 regions
The great condo craze took on a new dimension in July as sales of high-rise condo suites in the 905 regions of Peel and York spiked at the expense of sales in the City of Toronto, reveals Desi Auciello, president of the Greater Toronto Home Builders’ Association (GTHBA).
While high-rise condo sales were up a modest 8% across the GTA, they increased by a whopping 260% in Peel region and an equally astounding 215% in York region. Meanwhile, high-rise unit sales fell by 32% in the City of Toronto.
Whereas Toronto typically accounts for 75 to 80% of monthly high-rise condo sales, its share of the market fell to just 49% in July as homebuyers were attracted to high-profile new high-rise condo developments in Markham and Mississauga.
“We’re seeing the front edges of a gradual shift towards intensification of our suburban cores, although it won’t be quite as dramatic as we are currently witnessing,” says Auciello. “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,” notes Auciello.
Auciello adds that 46% of total new-home sales in July were high-rise condos, continuing a remarkable shift in purchasing behaviour among new-home buyers.
According to RealNet Canada Inc., the GTHBA’s independent source of new-home market information, there were 3,096 new homes and condos sold in July. High-rise unit sales were up 8% while low-rise unit sales (single-detached, semi-detached and town-homes) were down 18% compared with July 2005, resulting in a modest 8% overall decline in sales.
The GTA new-home price index remained steady in July at $392,138 for low-rise homes and $312,966 for high-rise apartments.
The index is essentially the average asking price of all the remaining new homes and condos currently available for sale, as calculated by RealNet Canada Inc.
The new-home price index is based on currently available new-home offerings, weighted by remaining inventory, for projects of 15 or more units, excluding ultra-luxury product across the GTA.
The top five municipalities in the GTA for July were Toronto, 817; Mississauga, 553; Markham, 453; Brampton, 353 and Vaughan, 169.
With more than 1,400 members, the GTHBA is the voice of the residential construction industry in the Greater Toronto Area. Established in 1921, the association is comprised of land developers, home builders, professional renovation contractors, sub-contractors, suppliers, service, professional and financial firms. It is proudly affiliated with the Ontario and Canadian Home Builders’ Associations.
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