Tag Archives: new toronto condo
New Toronto condo sales hit record
Tony Wong – Toronto Star
In the next few weeks developer David Gerofsky plans to open sales of his Toronto condominium project to the general public.
The problem is, he’s already sold 75% of the building’s 616 suites.
Gerofksy, president of developer Great Gulf Group of Companies, is the man behind the insanely popular One Bloor project. He started selling suites to former buyers of the original project at the beginning of April. Select agents got a crack in the second round; the general public gets to finally take a peek this month.
In other words, if One Bloor were a nightclub, the line-ups would be around the block. And Gerofsky would be the guy at the velvet rope.
“There has been a really fantastic response. It’s the best we could hope for,” said Gerofksy in an interview Monday.
The 65-storey mixed-use building at Bloor and Yonge streets is considered the best prime site in the city. The original project under a different developer was a casualty of the global financial crunch in 2008. Great Gulf bought the land and brought the project to market this year.
Sizzling sales at One Bloor is one reason why condo research firm Urbanation inc. is forecasting that the second quarter of this year could set a record for sales of new condos. Toronto’s condo fever shows little signs of abatement, despite warnings from some analysts that the market may be oversupplied.

Toronto condo sales hit a record in the first quarter of 2010, according to a report by Monday.
Developers sold 5,415 new condominiums in first three months of the year, up 491% or nearly six times more than the recession-impacted quarter of 2009. This represents the highest number of first quarter new unit sales on record, according to Urbanation.
Average price per square foot for all new units sold was up modestly from the fourth quarter of 2009 to $443 from $418. Unsold units on the market are asking an average of $509 per square foot.
Prices at the coveted One Bloor site, which started in the high $700-per-square foot range are now over $800 per square foot.
The sizzling sales also brought out a warning from Urbanation executive vice president Ben Myers against “irrational exuberance” among developers.
“If builders overbuild beyond what the market can absorb, an oversupply situation could potentially re-emerge,” warned Myers.
Myers said the Canadian market has seen the return of investors, some of whom are buying multiple units.
“When things go well developers tend to release bigger projects and jack prices up, which could hurt the market,” said Myers.
However, Great Gulf Executive Vice President Bruce Freeman argues that distinctive buildings with central locations such as One Bloor will retain value.
“We’re not trying to be cocky, but there really is only one One Bloor; it’s the best address in the country,” said Freeman.
Freeman said because sales are ahead of schedule, the company was hoping to “speed things up” and potentially get a ground breaking sooner than expected.
By and large, Canadian developers have held the line on pricing during the recession, said Urbanation’s Myers. The problem is whether builders start to get overly optimistic by raising pricing too quickly, while bringing too much supply to the market.
There were 17 new condo projects in the first quarter of this year, while the second quarter is forecast to see an estimated 30 projects alone.
According to Urbanation, resale condo sales were also healthy, almost doubling the figures of the first quarter of 2009.
Average resale prices were $331,000 in the first quarter of 2010, compared with $280,000 in the same quarter last year.
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Preparing for a plug-in future
Chris Atchison – CTV
When most people drive around a city, their prime concern is dodging traffic. For Brian Denney, it’s a matter of how many questions he’ll have to answer about the Prius he’s driving.
“Every time you’re stuck in heavy traffic, people roll down their window and yell a question looking to know how it works,” Mr. Denney, chief administrative officer of the Toronto Region Conservation Authority, says of the plug-in hybrid that he drives regularly, one of several in the organization’s tiny gas-electric fleet.
“It indicates there’s a lot of interest in the marketplace for electric vehicles.”
Indeed, in recent years models such as Toyota’s Prius and the soon-to-be-released Chevrolet Volt have piqued consumer interest in the prospects of driving a vehicle that runs in whole or in part on electricity.
But perhaps the more pressing consideration for the average Canadian driver is whether existing infrastructure would make owning and operating a fully battery-powered, plug-in car a comfortable proposition.
“It’s no more difficult to get around in this hybrid because [it also has an internal combustion engine], but you do find yourself trolling for a plug,” Mr. Denney says of the conservation authority’s Prius, which can be charged in a standard 110V outlet. “I can usually find a place to plug in, but that’s often in a municipal office or underground parking lot where I happen to find an electrical outlet.”
And what if that car was fully electric, running on battery power alone?
“On a prototype scale like this, it’s no problem at all,” he says, “but if there were 10,000 of them on the road, it would be a real issue.”
It’s clear that significant urban planning changes will be needed for the coming electric-car onslaught as consumers look to charge green cars at home, at work and at public locations such as shopping malls.
Barriers to the widespread embrace of the electric car are complex. Without proper infrastructure, and co-ordination among governments, utilities and building developers, drivers will almost certainly stick to their gas-powered rides.
“We need the transportation guys talking to the condo guys that are building spots in garages,” says Andrew Bowerbank, president of the EC3 Initiative, a Toronto-based renewable energy consultancy. Mr. Bowerbank recently spearheaded a cross-discipline workshop in Toronto to allow key stakeholders to open that dialogue.
“I think electric cars have a very strong potential,” he adds, “especially if you find a way to manage our electric grid and utilize renewable technologies so we put as much on the grid as we take off.”
The issue of power drain is a major concern.
According to some estimates, Ontario’s existing power grid could accommodate as many as 10 million electric vehicles each year, assuming most were charged in off-peak hours and used smart technology that allowed the grid to draw power from plugged-in vehicles at times of peak energy use.
That kind of technology isn’t the stuff of science fiction. Just last week, Ford Motor Co. and Microsoft Corp. debuted Microsoft Hohm, a new online application free to owners of Ford plug-in cars that will help them choose ideal times to charge their vehicles.
Assuming those grid projections are correct, there’s still the as-yet-undetermined issue of standardization. Although vehicle makers including GM, Chrysler, Ford, Toyota, Honda, Nissan and Tesla agreed on a standard electric vehicle connector to charge cars at either 120 or 240 volts earlier this year, faster charging technologies could soon render that plug obsolete.
Despite the logistical challenges, some progress is being made on the legislative front to serve early plug-in adopters.
The City of Vancouver, for example, now requires all new single-family homes – as well as 20% of all parking stalls in new condominiums – to include plug-in outlets, while Ontario is offering up to $10,000 in car rebates to subsidize steep electric-car sticker prices, which can be double the cost of an average car.
Al Cormier, executive director of the Toronto-based electric car advocacy organization Electric Mobility Canada, says jurisdictions across Canada need to work together if electric car adoption is ever going to gain speed.
“We need more building code amendments to require new condos to have parking outlets at least in a percentage of parking spots,” he says. “Then we need to deal with retrofitting older condos. It’s not rocket science to run the wires and the plugs, but it takes will and a bit of money to do it.”
Some developers are already jumping on the electric-car bandwagon.
Vancouver-based Concord Pacific Group Inc. last year announced that its latest Vancouver condo, the 23-storey Cosmo set to open in 2012, will include outlets in about 20% of parking stalls, while Ottawa-based Minto Group Inc. is roughing in wiring for electric outlets for 10% of parking stalls in one of its new Toronto condos. (The builder plans to hardwire a portion of spots in all of its future developments, but is hesitant to install actual outlets until charging standards are fully clarified.)
“We wanted to build in the capacity to ensure that our consumers are protected when they move in,” says Andrew Pride, vice-president of the Minto Group’s Green Team.
Stephen Dupuis, president and CEO of the Toronto-based Building Industry and Land Development Association, argues that greater collaboration between stakeholders such as governments and builders is needed to avoid turning a green solution into a major new cost and logistical issue for home and condo builders. He also questions just how ready the market is for electric cars.
“I suppose it will become more of a higher-level planning issue if market penetration gets to 20 or 30%. At that point it’s a sea change in the transportation industry, but I don’t believe that’s close.”
But as Mr. Cormier explains, one major factor could fuel the thirst for plug-in cars, encourage municipal governments to pass more coherent and consistent infrastructure bylaws, and give builders and retailers an incentive to retrofit public lots to accommodate these green machines: a major spike in the price of gasoline.
“If gas gets to around $1.30 per litre, a lot more people will want hybrids at least, if not electric vehicles,” he says. “There’s no question that people need to accept that electric cars are coming and be ready for them.”
Charging up
500,000 – Number of highway-capable plug-in electric vehicles that Industry Canada estimates will be on Canadian roads by 2018.
$750 – Cost in Canadian dollars of installing a 240V outlet in a home capable of charging a plug-in vehicle, according to the Rocky Mountain Institute, a Snowmass, Colo.-based non-profit organization dedicated to promoting renewable energy solutions.
$3,500 – Cost of installing a public charging unit – although the Rocky Mountain Institute says that could be higher as the estimated costs for charging stations vary greatly depending on where they are installed. Not included is the possible ongoing cost of billing drivers for the electricity, for example, through a credit-card system.
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Contact the Jeffrey Team for more information - 416-388-1960
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Condo turns to lottery system to meet demand
By Stefania Moretti, QMI Agency
In a sign pre-construction condo appetites among Canadians are healthier than ever, developers are turning to old tricks to ensure they can meet buyer demand fairly.
Sellers for the “River City” project in the West Don Lands neighbourhood of Toronto opted to draw names in a behind-closed-door lottery Tuesday to determine who had first dibs on floor plans. Occupancy isn’t slated until 2011 but still developers anticipated demand for their pre-construction units starting at $179,000 to be considerably higher than supply.
“I haven’t heard of (lotteries) in a long time,” Georges Pahud, president-elect of the Canadian Real Estate Association, told QMI Wednesday. Lotteries, which were fairly commonplace at the height of the Toronto condo market in 2007, died off after the 2008 sub-prime mortgage meltdown.
Urban Capital and Red Quartz Development, the firms behind River City, may have taken a cue from pre-sale condo buying sprees that turned nasty in recent days.
Over the weekend, a horde of home buyers in British Columbia stood in the rain for a chance to purchase condo units in a 26-storey tower to be erected in Vancouver’s trendy Yaletown neighbourhood. The Omni Group’s “The Mark” isn’t scheduled for completion until 2013 and prices range from $320,000 to more than $900,000.
And just a few days earlier in Toronto, condo sellers were forced to enforce a number chit system for real estate investors to quell disputes over the chance to buy into the new downtown project dubbed “X2″ by Great Gulf Homes and Lifetime developments. Units there were snatched up for $270,000 and above — prices considered reasonable for the city.
Toronto-based agent Andrew La Fleur of Re/Max Condos Plus said his phone was ringing off the hook after news of the X2 buying frenzy spread.
“Suddenly someone who has never heard of the project wants to put their life savings into this thing,” La Fleur recently told QMI.
La Fleur has noticed a “big time” upswing in the new Toronto condo market, comparable to 2007 levels.
“Things are back to being as crazy as it ever was,” he said, citing a combination of factors including record low interest rates and a return to the belief that Toronto real estate is a safe investment.
For the average person, buying a condo is one of the easiest ways to get a foot in the investment door, he said, adding “The increase in media coverage of these hysteria-type buying activities fuels the fire a bit.”
Pre-sale condo buyers often hope to turn as much as $50,000 profit flipping a units in the short term.
“Over the past 10 years, that’s exactly what has happened so people are once again back on the bandwagon and hoping for more of the same,” La Fleur said.
La Fleur is skeptical though that prices can sustain current appreciation levels which have been off the charts during the past six months. Pahud too sees the market levelling off in the near future.
“In most major markets, supply and buyers are relatively balanced,” Pahud said.
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Contact the Jeffrey Team for more information - 416-388-1960
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