High-rise condo market shifts to 905

GREATER TORONTO, Aug. 23 /CNW/ - The high-rise condo market in the Greater Toronto Area continues to rise high while the low-rise suburban (905) housing market remains constrained by the acute lack of product available for sale, the Building Industry & Land Development Association revealed today.

While high-rise sales in July slipped a modest 10 per cent from July 2009, sales in the January-July period were up 104 per cent with the 11,327 units sold representing the second highest total (behind only 2007 at an astounding 13,365 units) in the last 11 years.

In what may be the first signal of an emerging trend, nearly half (46 per cent) of high-rise unit sales in July were recorded in the 905 Regions of the GTA. "Toronto has consistently commanded an 80 per cent share of all high-rise sales while 80 per cent of low-rise sales have been in the suburbs. However, that balance is expected to shift as municipalities start to conform with the Greater Golden Horseshoe Growth Plan," said BILD President and CEO Stephen Dupuis.

With continued strong sales, the high-rise price index rose exactly 10 per cent year over year, and currently sits at $430,782 compared with $391,673 last July.

Meanwhile, on the low-rise side of the equation, sales dropped 65 per cent from last July although they still remain up 8 per cent over 2009 on a January-July basis. As noted, the inventory of low-rise homes available for sale in the GTA remains near all-time lows.

"The shortage of supply of new, low-rise housing product is reflected in the fact that nearly two-thirds (64 per cent) of all new home sales in July were high-rise condos compared with the new norm of around 50 per cent," Dupuis said, adding that the low-rise price index jumped 9.2 per cent year/year, rising from $447,950 to $489,088.

    
    -------------------------------------------------------------------------
    July '10    Low Rise             High Rise                 Total
    -------------------------------------------------------------------------
                               %                     %                     %
    Region   2009   2010  Change   2009   2010  Change   2009   2010  Change
    -------------------------------------------------------------------------
    Durham    238    199  -16.4%      2      1  -50.0%    240    200  -16.7%
    -------------------------------------------------------------------------
    Halton    321     47  -85.4%     35     21  -40.0%    356     68  -80.9%
    -------------------------------------------------------------------------
    Peel      453    140  -69.1%     85    328  285.9%    538    468  -13.0%
    -------------------------------------------------------------------------
    Toronto   102     40  -60.8%  1,091    658  -39.7%  1,193    698  -41.5%
    -------------------------------------------------------------------------
    York      810    252  -68.9%    145    214   47.6%    955    466  -51.2%
    -------------------------------------------------------------------------
    GTA     1,924    678  -64.8%  1,358  1,222  -10.0%  3,282  1,900  -42.1%
    -------------------------------------------------------------------------
    Jan-
     July  9,372  10,157    8.4%  5,543 11,327  104.3% 14,915 21,484   44.0%
    -------------------------------------------------------------------------
    Source: RealNet Canada Inc.
    

With more than 1,300 members, BILD, formed through the merger of the Greater Toronto Home Builders' Association and Urban Development Institute/Ontario, is the voice of the land development, home building and professional renovation industry in the Greater Toronto Area. BILD is proudly affiliated with the Ontario and Canadian Home Builders' Associations.

For further information: Andrei Zaretski, Manager, Communications, 416-391-3450 or 416-843-4898, [email protected]; Stephen Dupuis, President, Chief Executive Officer, 416-391-3453 or 416-948-8654, [email protected]