Urbanation's Q2/07 Market Overview Shows Record New Condo Numbers
TORONTO, Aug. 8 /CNW/ - With over 10,000 new condominium sales in the
first six months of 2007 in the Greater Toronto Area, sheer volume is the
story at the end of the second quarter of 2007 as there were record numbers of
(1) new sales at 6,997 units; (2) resales at 4,165 units; (3) new project
openings at 36; and (4) new condominium units at 54,924 by the end of the
quarter June 30, 2007, according to the latest Urbanation Market Overview.
Toronto is on track to break the 2005 record of 16,224 sales, said
Urbanation's Editor and Executive Vice President Jane Renwick. "We are
currently forecasting a total of 17,000 new condominium sales and 14,000
condominium resales in 2007."
Describing the overall results as "a lot of activity for one quarter to
absorb," the Urbanation report asks if "the Toronto CMA condominium market can
sustain this kind of volume, especially in an environment of aggressive price
Added Ms. Renwick, "Affordability - from both an investor and first-time
buyer perspective - is also being tested as prices continue to rise. The
performance of Q3-2007 could indicate whether Q2-2007 was an anomaly or the
beginning of a new trend."
Analysis of the second quarter data shows that parallels to the late
1980s (nearly 20 years ago) have emerged: the sales-to-unsold supply ratio has
not exceeded 55 per cent since 1988; however, it reached 61.9 per cent at the
end of Q2-2007.
Quarterly price increases have not surpassed five per cent since
1988/1989, but prices have risen 6.6 per cent from the first quarter to the
second quarter of this year.
The year-over-year price increase was also significant at 12 per cent,
which represents levels only experienced three other times in the past two
decades (1987 to 1989, 1994 and 2000). Urbanation is expecting an additional
29 new projects to open in the third quarter, which will bring another 7,623
new units to the Toronto CMA.
Despite the recent price increases and parallels to the late eighties,
Urbanation is still confident in the new and resale condominium markets,
stating that condominiums fill an important housing gap between the rental and
single family detached housing markets.
Urbanation is Canada's leading condominium market research firm. Since
1981, the firm has been analysing the Toronto condominium market, publishing
the "industry bible" - Urbanation's Condominium Market Survey. This quarterly
report tracks new, resale and future condominium projects. Urbanation also
provides the development community with essential consulting services, which
include site specific market studies, surveys and focus groups.
Jane Renwick 300pdi photo available from Joanna Moore at The
Communications Group Inc. 416-696-9900 or firstname.lastname@example.org
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