So Toronto’s New Home Construction statistics have been unveiled. Last year there were a combined total of 32,842 new low-rise and high-rise homes sold between January and December 2012.
This represents a 29.1% decline from the year prior, which was a record for Toronto.
The most interesting tidbit? New high-rise prices increased 2% while the size of units shrunk 16% to around 800 square feet on average. A crackerjack box is now smaller and costs more!
Although the new home sales declined, the Greater Toronto Area has a record number of high-rise units under construction. In 2012, 237 high-rise projects with units totalling 60,713 were under construction, of which 88% were sold as of December 31st. Compare that with 308 low-rise projects with a total of 42,934 units under construction, of which 82% are sold. Despite that, only 10,575 high-rise units were delivered throughout the year, down 26% from 2011 and the lowest in the past decade. Note that means there are six times the number of units to be delivered in our near future than were completed in 2012.
A word of caution. Although 88% of high rise units are under contract, that doesn’t necessarily translate into certain sales. There is a lot of speculation with the intention of assigning the finished unit in advance of condominium registration. Be wary.
You can click HERE to read the entire National Post story.
~ Steven and the urbaneer team