Toronto Condominium Market Update

While prior Toronto real estate statistics mentioned that the Toronto condominium market was expected to slow down, the demand for Toronto condos is still at record highs, with only slightly fewer condos sold than in the late 2007 and early 2008 boom.

No matter where the Toronto condominium market is headed, plenty of condos are being built in Toronto.

The sales of condos in the last quarter of 2010 were slightly lower than the same time in 2009, but the sales are still growing strong. Which is good, because the condo developments keep on coming. Last year alone, Toronto had 16,000 new units completed, which was twice as many as New York. Over 34,000 units are under construction in the city, with 5,000 more units scheduled to start construction between now and the end of the year.

The Toronto Real Estate Board released figures at the end of July showing that sales had declined 25 per cent over June, but prices remained constant. As supply grows, prices may also come down, which is always good news for condominium buyers in Toronto.

One interesting factoid about the Toronto condo market is that a large portion of them is owned by overseas investors, about 40 per cent, while the Toronto home market is quite the opposite. The worst case for these investors and the best case for Toronto condominium buyers is that they might rush to sell if prices take a hit, providing buyers with even more choice at less cost.

The boom of condominium supply in the city shouldn’t slow, because Toronto needs an annual increase of 40,000 living spaces per year due to immigration and there’s little room to place communities of homes, leaving developers with the obvious choice of building even more condos.

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