Posted by genieSABRE on Aug 2, 2012
Toronto Condo Market Shows Signs Of Slowdown

Toronto Condo Market Shows Signs Of Slowdown

As Buyers Flee Tiny Suites

 

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 ‘Manhattanization’ of Toronto 

 

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.

2012 – Condo Unit Price / Sq.ft

unit price/sq.ft 

2014 – Condo Unit Price / Sq.ft

unit price/sq.ft


 
Many market observers worry that over-development will cause a housing crash in Toronto that could lead to very low prices for small condos, which could end with the ghettoization of some neighbourhoods.

But others argue Toronto is growing, and the reality of the housing market is changing as the city becomes denser and larger.


 


REMEMBER: Real Estate

Home Owners: If, you already own a home – good for you!

May you be blessed with
warmth in your home,
love in your heart,
peace in your soul
and joy in your life.

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genieSABRE recommend you check out our main web site. You will not be disappointed!

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Real Estate Investors: Home ownership should be your 1st. priority. If you own your own home – Good for you. But now is the time to take that second step – Buying Rental Property for investment. Commercial, retail or home.
genieSABRE has extensive knowledge and experience in this field. As a developer of commercial /retail plazas (built 3 so far) and owners of residential rental homes, we can guide and advice you as to what is best for you according to your personal financial position.

Call: Hannif Highclass @ 416.444.4252

http://www.geniesabre.com

 

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