Nearly half of new home sales were Toronto condos in May
Toronto - Nearly one half (45%) of all new home sales in Greater Toronto in May were high-rise condominium apartment suites, the Greater Toronto Home Builders’ Association revealed.
Although condo and total sales were down from May, 2005, Toronto condos continue to grow in popularity with home buyers, primarily because of their relative affordability compared with low-rise single and semi-detached homes and townhomes.
According to RealNet Canada Inc., the independent source of market information for the Greater Toronto Home Builders’ Association, Toronto condos have accounted for 41 per cent of all new home sales through the first five months of the year.
“It is ironic that on the day the provincial government released its growth plan calling for 40 per cent intensification in each municipality by 2015, we are already there, albeit on a region-wide average basis,” said GTHBA executive vice president Stephen Dupuis.
Overall there were 3,464 new homes and condos sold in the GTA in May, 2006, down 24 per cent over May 2005. “Demand continues to be strong for new homes but land supply and infrastructure constraints are finally catching up to the building industry,” Dupuis noted.
“York region is suffering from a shortage of sewer capacity resulting in Richmond Hill, for example, declaring that it will not be able to issue building permits for five years beginning next year. Peel region has very few large, active sites remaining,” Dupuis added.
The GTA new home price index rose to $396,431 for low-rise homes and $311,133 for high-rise apartments.
The index is essentially the average asking price of all the remaining new homes and Toronto condos currently available for sale, as calculated by RealNet Canada Inc., the GTHBA’s independent source of new home market information.
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 May were Toronto, 1380; Brampton, 380; Mississauga, 312; Vaughan, 217; and Markham, 190.
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. We are proudly affiliated with the Ontario and Canadian Home Builders’ Associations.
