ReMax Condo 2010 GTA Report

The Greater Toronto 2010 Condo Report

While overall demand for condominium apartments and towns in Greater Toronto has softened somewhat in recent months, multiple offers continue to occur on affordable product in the downtown core. Units priced under $300,000 are particularly coveted, with younger buyers vying for entry-level properties in developments along King West, the Harbourfront, and Bay St. north to Bloor. To date, close to 6,800 properties have been listed for sale in

C01—bordered by Bloor St. to the north, Yonge St. to the east, Dufferin St. to the west, and Lake Ontario to the south—close to half of which have sold. Average price in the area—which boasts the highest concentration of condominiums in the city—peaked in March, and now hovers at about $395,000—still well ahead of year ago levels. Days on market are sitting at a monthly average of 31 in September. Yet, inventory levels in some of the more popular buildings are exceptionally low, creating real upward pressure on pricing. End-users account for approximately 90 per cent of existing sales in the downtown core, while Asian and Middle Eastern investors are driving demand for newer product. American investors are less active than in prior years, with most preferring to invest in Chicago and New York where rental rates are climbing. Supply has kept rental rates in check for close to three years in the GTA. Other popular areas within the central core include virtually all developments along the Yonge subway line, as well as Cabbagetown and the Distillery district. Queen West is expected to be a significant up-and-comer when more units come on stream next year —far outpacing the popularity of trendy King West. Condominium communities in peripheral areas such as Port Credit and Square One in Mississauga and parts of Scarborough are also enjoying solid demand from first-time buyers. Empty-nesters and retirees continue to be a major force in the upper end of the market this year. Year-to-date sales of luxury units priced in excess of $1 million have jumped close to 50 per cent in the Greater Toronto Area, rising from 95 units between January and September 2009 to 142 units during the same period in 2010.

Condominiums now represent close to 32.5 per cent of total residential sales within the GTA. Almost 22,500 units have changed hands year-to-date, an increase of just over 10 per cent from the 20,362 sales posted this time last year. Solid economic fundamentals will support momentum in the condominium segment in coming years, especially given the expected upswing in population and immigration. Land scarcity will also play a role, as the city ramps up its intensification and urban renewal efforts, particularly in the core.



For more information please contact: Kathy Gordon Sales Representative RE/MAX Professionals Inc., Brokerage 270 The Kingsway Suite 200, Toronto, Ontario M9A 3T7 BUS (416) 236-1241 FAX (416) 231-0563 E-MAIL kathy@etobicokehomes4sale.com Website: etobicokehomes4sale.com