ADVICE | STAT CHAT
2017
NEW CONDO SALES COULD SET ALL-TIME HIGH, AGAIN!
BEN MYERS WHEN TALKING ABOUT new condominium sales in the Greater Toronto Area, I sound like a broken record. Every couple of years the previous record high for transactions is broken, and 2017 could topple that record again. In 2016, there were 29,186 new condo sales in the GTA, topping the previous record high set in 2011. Through the first five months of 2017, there have been 17,200 sales according to data from Altus Group, a 58-per-cent increase over the pace set last year. However, sales in May were down 12 per cent year over year. Some will blame Ontario’s Fair Housing Plan for cooling the market, but the majority of new condominiums that have launched after the announcement on April 20 have experienced sales success, with 13 of the 17 projects selling over 40 per cent of their units, and 10 of 17 selling over 60 per cent. In the past, new-home market trends have followed resale housing trends and there has been a slight cooling in the resale 28 NextHome.ca | GTA | July 8-Aug 5, 2017
housing market, however many buyers see a new pre-construction condominium purchase as a long-term investment, as many of these towers will not be ready to occupy until 2020 or 2021 at the earliest, and no one knows what resale market conditions will be at that time. PRE-CONSTRUCTION
Many investors and end-users looking at the new-home market like the advantages that preconstruction condominiums provide. New units include stateof-the art common amenities and interior finishes, the ability to customize a suite and choose the flooring, countertops and appliances, as well as the peace of mind that comes with having a new-home warranty. Now, some of you might be waiting for many of the new condominium projects to complete to snap up the last of the unsold developer inventory when construction wraps up. There might not be any. According to Altus Group, 97 per cent of the 58,000 new condominium apartments under construction in the GTA are already sold. Many investors
who purchased have not been “flipping” the units at registration either, as the red-hot market for condominium rentals is about to get even hotter. New condo completions are down 21 per cent in 2017, and the introduction of rent control in Ontario will incentivize some renters to stay put, and many others who contemplated buying to put-off that decision. If you are looking at a new condominium, surround yourself with a capable team that includes a knowledgeable realtor, a mortgage broker, and a real estate lawyer. Your team will help to ensure you’re getting the best deal, and you’re familiar with all the costs and benefits of buying new. Fortress Real Developments partners with builders across Canada, and Ben assists in evaluating the market and projects that Fortress engages in. Follow his blog posts and commentary on the Canadian Housing Market at fortressrealdevelopments.com or follow him on twitter at @BenMyers29
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