Development Association (BILD) announced today..
There are no more adjectives best to describe the new high rise condominium market in the GTA, so I will let the facts speak for themselves.
According to RealNet Canada Inc High rise sales were up 89 per cent over April, 2010, and double the average levels achieved over the last 12 years. Through the first four months of this year, condominium sales are running 23 per higher than last year at the same time. nearly two-thirds or 64 per cent of all new home sales in April were high rise condominium suites, which in it itself is a record-high monthly market share. On a year-to-date basis, six of every 10 new homes sold have been high rise condominium suites.
The City of Toronto, which accounted for 74 per cent of the sales, but the 905 high rise condominium market is coming on strong, particularly in Halton and York regions, where sales were more than six times higher this April than last. Markham was particularly hot with 435 units sold, with healthy numbers also posted in Burlington, Mississauga, Richmond Hill, Oakville and Vaughan, in that order.
As for the low-rise market, April sales declined by four per cent compared with April 2010, and are down 14 per cent on a year-to-date basis, reflecting price pressure caused by the very restricted supply of low-rise land. Low-rise prices are up 7.3 per cent year/year to $524,954 while high-rise prices are up 5.2 per cent to $447,352.
The trend towards higher high rise condominium sales in the 905 regions is encouraging, however builders are facing some major cost obstacles, particularly excessive parkland dedication costs, which make the project economics very difficult.
What’s behind the Hot high rise condominium market in the GTA? First and foremost, it’s the relative affordability of high rise condominium. We’ve got a severe shortage of land in the GTA, The other factors behind the hot high rise condominium market in the GTA the continued strong net migration into the GTA, a relatively healthy economy, and exceedingly low borrowing rates, investors are also playing a significant role in the high rise condominium market,
Many first-time buyers are entering the high rise condominium market from the resale side, buying newly completed units held by investors over the 24-36 month build-out period. Many other investors are renting their units out, and that’s a very good thing because without that supply, we’d have a rental housing crisis in the GTA.