Nov 08, 2008
Toronto Star

The Toronto condominium market was on pace with 2005 and 2006 in terms of new unit sales, according to the latest data from Urbanation.

“The Toronto condo market is showing signs of softening, indicating that the ‘go-go’ market of the past few years has returned to more normal levels, as Canada feels the effects of a so-far-mild slowdown,” said Jane Renwick, executive vice-president of Urbanation.

The Toronto development industry appears to be on track to sell about 16,000 new condo units in 2008, down from the record-breaking 2007, but on trend with both 2005 and 2006.

A total of 15 new condo projects opened in the third quarter of 2008, and sales were strong, as 47 per cent of the 4,449 new units released were sold during the quarter. This compares with the historic norm of 35 to 40 per cent.

Pricing for new condos in Q3/08 was up a modest 2.5 per cent from the previous quarter, from $396 per square foot in the second quarter to $406 per square foot in Q3/08.

The market is still being driven by positive forces that includes migration into the city, affordable pricing, and low interest rates.