As recently published in the Toronto Star, Toronto currently has 132 high-rise projects under construction, compared to 88 in Mexico City and 86 in New York City. Wow! The source of the data comes from the September 2011 survey Germany's Emporis Company. Emporis is a well-regarded global authority on multi-storey buildings, who define a high-rise as between 35 and 100 metres high with 12 to 40 storeys. Who knew a building taller than this gets designated as the much sexier-sounding 'Skyscraper!'?
Fortunately for developers, demand for condominiums is matching the extraordinary pace of construction. Toronto condominium sales comprise nearly 61% of the total so far this year, up from 57% the year prior, and October 2011 sales are the second-best ever recorded.
Globe real estate news service PropertyWire consulted urbaneer.com for our opinion on the matter. Read on below for our latest press.
Photo: Courtesy of The Toronto Star
Toronto Market Continues to Surge
Heather Wright, Real Estate Trade Journalist
Published on Propertywire.ca, a resource for Real Estate and Mortgage Professionals, Nov 4, 2011.
The market in Toronto seemingly only knows one direction- up.
According new data released by TREB, sales for October climbed an impressive 17.5%, year-over-year.
“The pace of October resale home transactions remained brisk in the GTA. This bodes well for a strong finish to 2011,” said Toronto Real Estate Board President Richard Silver. “Home buyers who found it difficult to make a deal in the spring and summer due to a shortage of listings have benefitted from increased supply in the fall.”
As Steven Fudge, Sales Representative, Bosley R.E. Ltd (http://www.urbaneer.com) told Propertywire.ca, although there are plenty of signs that indicate that 2011 will close out with similar, robust activity, there are elements at play that do pose the possibility of influence: “The general consensus is that the fundamentals for Toronto real estate are sound, but the erratic stock market and headline news of other world economies may be causing a reason for pause. If the market slows before the end of the year, these will be the big factors influencing a decline in sales.”
And it wasn’t just sales activity that continued to climb through October; average prices in this hotbed continue their ascent as well, up 8% year-over-year, resting in at $478,137.
And as Fudge points out, these intense conditions, while support consistent upward trends, begin to take their toll on consumers after awhile. “In the City of Toronto, sales of freehold properties will remain strong for the balance of the year, as demand continues to outstrip supply, though purchasers are displaying signs of fatigue and are weary of the bidding wars. Many are refusing to go head to head in competition, which is causing some homes to stay on the market longer than expected. “
“Sellers’ market conditions remain in place in many parts of the GTA. The result has been above-average annual rates of price growth for most home types,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis. “Thanks to low interest rates, strong price growth has not substantially changed the positive affordability picture in the City of Toronto and surrounding regions.”
Fudge sees the condo market as a possible driver towards balanced territory in Toronto: “The City of Toronto, which has a significantly larger supply of condominiums for sale, is not as robust as the freehold market segment. Unless aggressively priced, condominiums will be for sale longer before trading, which signals a more balanced market. Hopefully this indicates a soft landing, rather than a crash.”