Q4 2010’s 6,280 new Toronto CMA unit sales were the 4th highest quarterly total on record: with aid of robust resale activity, 2010 market powers to strong finish For the second consecutive year, the Toronto CMA new-condominium market finished with a bang. A flurry of sales activity in Q4-2010 resulted in 6,280 new condominium units sold in the quarter. This represents an impressive rebound from the 3,805 new unit sales in the preceding Q3-2010.
Said Urbanation Executive Vice President and Editor Ben Myers, “The Q4-2010 new unit sales were much higher than expected, spurred by tremendous results at a number of new project openings in the City of Toronto. In the end, 2010’s total annual new and resale condominium sales of 37,041 units were just three per cent shy of the historic 2007 record of 38,306 units sold.” Compared to 2009, 2010’s sales represent an increase of 20 per cent over 2009’s 30,939 new and resale condominium units sold. 2010 sales soared 27 per cent over 2008’s sales of 27,187 new and resale volume. Myers added, “Even more impressive than the sales results were the number of construction starts, a Toronto CMA record of 18,221 high-rise condominiums started in 2010, more than twice as many as 2009. There are now 34,548 units under construction in the CMA in 132 projects”.
The key to Q4-2010’s strength, and the overall 2010 annual sales success, seems to have been a combination of developers continuing to restrain pricing at new project launches to appeal both to the general market, and to investors looking to acquire suites as future rental properties. A 2010 Urbanation survey of condominium industry professionals indicates that their major concern with regard to 2011 sales levels will be affordability. In the Toronto CMA overall, the unsold unit index price for new projects (the average asking price of available product per square foot), rose eight per cent annually from $493 to $530 psf in Q4-2010. The unsold index price in the former City of Toronto was $646 psf in Q4-2010 and $723 psf in the Downtown Core.
Pricing in the resale market has flattened in recent quarters, but has risen six per cent annually from $352 psf in Q4-2009 to $374 psf in the fourth quarter of 2010. Resale index pricing in the former City was $487 psf in Q4-2010 and $518 psf in the Downtown Core. There were 3,538 condominium apartment resale transactions in the fourth quarter in the CMA, with the average unit selling for $339,000. “Urbanation expects 15,000 to 17,000 new units to launch in 2011, with approximately 16,000 sales, representing a slight drop-off following the ‘boom’ conditions in 2010” said Myers, “Moderate growth is expected in the resale condominium market, and Urbanation is forecasting 17,000 resales in 2011.”