There is a new report about the Greater Toronto Area (GTA), especially regarding Toronto Condo sales and as per the report, it looks like business is booming in the real estate sector. As it is, rent in Toronto is already high, but as compared to the rising rent of properties the condo sales outside downtown Toronto have seen a substantial increase i.e., 77 per cent this year. Today, a 1-bedroom rental in Toronto will be available for about $2,290, which is about 2.7 per cent more compared to January this year.
Condos in downtown Toronto have a going rate of about $1,291 per square foot, $894 per square foot in the outer parts of the 416 Area and $740 per square foot in the 905 region. This goes to say that living outside the city might not sound so bad due to lower per square foot rate.
What do market trends say?
According to a report by Urbanation Inc, the real estate developer in Toronto, Canada, there seems to be a two-times increase in the condo sales of adjoining areas of the city, like Scarborough, North York, and Etobicoke.
With the help the agency of public transport known as the Toronto Transit Commission which operates the buses, subways, streetcars and para transit services in Toronto, Ontario, Canada and other transit options, for having reduced the daily travel time between these areas and downtown. As per the report, this appeals to the population which is likely to succeed; bright and industrious and those who want to stay close to the 416 Area, but are not ready to pay the amount for it.
In cities like Mississauga, Brampton, and Hamilton, sales grew almost 150 per cent, beating Toronto in the competition of condo sales figures. These cities witnessed record condo sales of 58 per cent in the GTA. This can be attributed to the influx of population to these cities, a pretty healthy job market and people seem to be borrowing less from the financial institutions.
Does it hold good across the entire GTA?
But people who want to live the lavish life in downtown Toronto do not seem to have lady luck on their side. The report shows that sales dwindled to 12 per cent, the lowest since 2009. Living in Toronto has always been expensive but according to Urbanation Inc., this could be due to changes in plans for new condos, high costs and challenges.
With the recent bubble bursting of Canada’s Housing market and it’s indicated price drop, there will be reasons for some reassurance for those Torontonians that have more money than they need.
In the second quarter, amidst lower borrowing costs, the sale of new condos touched near-record levels in the Toronto region, with most growth happening outside the heart of the city. According to the market research firm, Urbanation Inc., sales increased 77 per cent to 8,902 units compared to the same period last year, taking it to the second-highest level for the quarter, after the market peak of 11,413 pre-sales in the second quarter of 2017.
Urbanation Inc. said that sales in the suburbs doubled from last year, while the sales of condos dropped 12 per cent in the heart of the city, the lowest for that quarter since 2009. That could be attributed to higher costs and a jump in the primary rental market, also known as purpose-built rentals.
Urbanation Inc. also stated that a return to record-low borrowing cost, record-high population influx, a healthy job market, tight conditions in the resale market, and also a huge shift in demand to relatively low-cost projects, all drove this activity. It was further stated that the following reasons were of particular importance for this phenomenon: virtually every project launched for pre-sale in the second quarter had received planning approval, thus reducing the risk of cancellations which had been on the rise over the last couple of years.
The average selling price for new units appreciated more than 10 per cent in the second quarter from a year at $797 per square foot as compared to the earlier price of $606 per square foot.