Source: Hannif Highclass c/o Genie Sabre Realty Inc.
Publish:MY BLOG: Toronto Real Estate: August 2, 2012
Sales Activity And National Average Home Price Dip In June.
Sales of newly-built condos in Toronto dropped 50 per cent in the second quarter of this year, compared to the same period last year, according to Urbanation, a periodical that tracks the city’s condo market. Sales fell about 21 per cent from the previous three-month period.
But sales of previously owned condos rose 30 per cent compared to the same period a year earlier. Urbanation says the discrepancy is due to buyers resisting the increasingly small condos developers are offering.
The condos are getting smaller and smaller, and for all the comparisons of TO becoming more Manhattanized, one thing what we don’t share in common is that our average condo is size is much smaller than theirs. Lately we are seeing more and more crappy, awkward floor plans, windowless bedrooms, master bedrooms less than 8 x 10.
The Toronto Star reported last fall that the average size of a condo in Toronto has shrunk from more than 1,000 square feet a decade ago to around 921 feet last year. But there are now units coming online that are less than 300 square feet — smaller than many hotel rooms. The issue is less height than apartment size.
The reason for this is that, typically, developers have to sell 60 to 80 per cent of their units before they can secure bank financing to start construction, so they’re building what sells now — small units for singles and young couples who want to be urban dwellers. There’s just no demand for three-bedroom condos downtown. Those units sit on the market a long time. Because of their size (and the preponderance of investor-owners), these projects are most vulnerable to the vicissitudes of recessionary economics.
But others argue Toronto is growing, and the reality of the housing market is changing as the city becomes denser and larger.
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