June 30, 2011
With 2,433 new condo sales in the Greater Toronto Area, May set a record in the new high rise market, according to statistics coming to us from RealNet Canada.
To put these huge sales figures in context, the number of high rise units sold in May 2010 was 1,627. You know what that means — May 2011′s numbers are up by almost 50 per cent from last year.
WHOA!
One of the motivating factors for these astonishing high-rise sales numbers is the fact that builder low-rise home inventories available for consumer purchase are at record low levels.
Speaking with the National Post, George Carras, president of RealNet Canada, explained that, historically, Toronto “would have had over 20,000 low-rise units available in any month for consumers to buy. As of May, that’s 6,819.”
Carras also noted that provincial policies implemented in the past eight years to encourage intensification have created a more favourable environment for high-rise development.
While this lack of available low-rise housing isn’t great for families, the burgeoning condo market means good things for investors. According to Stephen Dupuis, president and CEO of BILD, the decrease in rental buildings constructed in the province has meant that investors aren’t having issues finding renters to fill their units when construction is complete.
The vacancy rate for Toronto rentals is down to 1.6 per cent from 2.7 per cent last year.
Very interesting that the vacancy rate is still declining despite the massive number of high rises constructed over the last year. Food for thought for the long weekend. I’m sure you’ll all be thinking about these statistics and what they all mean while enjoying fireworks or a cottage dock.
