TORONTO, November 3, 2009
…Urbanation, Inc., the leading source of information and
analysis on the Toronto condominium market since 1981, today released highlights of its Q3/09
market overview.
According to Ben Myers, Editor and Executive Vice President of Urbanation, “The performance
of the Toronto Census Market Area (CMA) condominium apartment market in Q3/09 was
nothing short of miraculous.
There were more new condominium sales in the third quarter of
2009 than in the first two quarters combined
and for the second consecutive quarter, a record
number of resale condominiums were purchased across the CMA.”
New condominium unit sales for Q3/09 numbered an astounding 4,617, a 56 per cent increase
compared to Q2/09 and 16 per cent increase over the same quarter in 2008. Resale units sold in
Q3/09 numbered 4,854, a 29 per cent increased over Q3/08.
Myers said, “The sharp turnaround in the new condo market was unexpected, but a pleasant
surprise following nine months of depressed activity.”
The average price per square foot (PSF) for the unsold new units in Q3/09 of $475 PSF has
remained relatively flat for over a year. Most of the new projects openings in the Quarter
launched with pricing below $475 PSF; these affordable projects contributed to the surge in new
condo sales in Q3/09.
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“Canny developers reacted by cutting back on previous Quarters’ incentive programs (which had
featured incentives such as free parking and locker, cash back at closing, or free suite upgrades),”
Myers added.
Q3/09’s sales activity brought the level of unsold new unit inventory down to a level 30 per cent
below the high of 17,610 in Q4/08; to 12,227 by the end of Q3/09.
“Many of the CMA’s major developers responded to the sharp uptick in sales in Q3/09 with a
flurry of high-density land sale transactions in Q3/09, most notably the acquisition of the
cancelled 1 Bloor development by Great Gulf Homes,” Myers said.
In addition to record level of resales in Q3/09, average price per square foot (PSF) in the resale
market of $337 psf, surpassed the previous quarterly record high of $328 PSF in Q3/08. Total
listings were down compared to Q2/09 - this lack of supply resulted in the average resale suite in
the Toronto CMA taking just 27 days to sell, down from 36 in Q2/09.
“Contributing to the lack of supply in Q3/09 was the recent City of Toronto workers’ strike,
which delayed registration of several new projects,” he added.
“Looking to Q4/09 and beyond, the upturn in Toronto CMA condominium market will continue
if the key elements remain in place; affordable PSF, low interest rates, continued migration into
the CMA, and an absence of any combination of government taxation, banking or regulatory
actions that might impede high-density growth,” Myers said.
The unprecedented decade-long boom in the Toronto CMA condominium market continues
thanks to the ingenuity of the industry stakeholders, and the confidence buyers have in
developers ability to delivery high quality product in the midst of a global recession.
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ABOUT URBANATION
Urbanation is Canada’s leading condominium market research company. Since 1981, Urbanation
has analyzed the Toronto condominium market, publishing the “industry bible” – Urbanation’s
Condominium Market Survey. This quarterly Report tracks new, resale and future condominium
projects. Urbanation also provides the development community with essential consulting
services, which include site and topic specific market studies and surveys.