Toronto region is enjoying a rise in of condos as against single family homes.This is reflected in the drop of 37% in home sales in the region. Amid tighter mortgage regulations, taxes on foreign buyers and other measures designed to curb runaway prices and household debt Toronto buyers are willing to spend more for pre constructed condos.
Market is stabilizing as new condo sales are seeing an increase over big detached homesin downtown Toronto. As per Shaun Hildebrand, president of Urbanation: "The price differential between the average price of a condo apartment and a low-rise home has narrowed to its lowest level in four years, which is creating more supply competition for condos and sparking some move-up buying." With innovative designs and enhanced facilities new Condos in and around GTA are in greater demand even after a 7.2 per cent rise in condo prices.
Though pricing has become paramount in consumer choice; every new condo project has experienced a sold out situation in a day or two of the launch as mentioned by founder of Mattey Homes; Peter Gilgan.
Price advantage, lower maintenance on the exteriors, better and higher rents supplemented with access to world class amenities and design if further pushing up the demand. Influx of over 100000 immigrants a year is augmenting the growth of Toronto’s New Condos forecast.
Unaffordable detached home prices in Toronto and Vancouver have pushed more people into the condo market, pushing up prices. At 903$ per square foot; Downtown Toronto is the third most priciest neighborhood in Canada in 2019 (source:Huffpost Canada).Experiencing a 10.3% yearly hike a 400-square-foot condo area will now cost around $360,000. This is further heating up Toronto’s market.
Canada's biggest city surely is heading to a busy spring property season!
Source: TREB Market Watch April 2019