Condo market to level off in 2018: Report More new projects on the market could slow price growth in 2018, says Urbanation.

See original article in The Star

The Toronto region’s heated condo market is set to level off in the first quarter of 2018, but not before the average downtown price per square foot crosses the $1,000 threshold for pre-construction units, says Shaun Hildebrand, senior vice-president of real estate market research firm Urbanation.

Unsold condo inventory has already reached an average of $991 per sq. ft. and the average selling price for all new projects that were launched in the City of Toronto in the third quarter was $951 per sq. ft., he said.

Read more: The Star looks at the present and future of Toronto housing

“I don’t think it will be long before it averages $1,000 per sq. ft. A couple of projects that have opened in the fourth quarter have prices well above that level,” said Hildebrand on Tuesday.

He cited the launch of The One, the 82-storey Mizrahi development at Yonge and Bloor Sts. where units are selling for nearly $2,000 per sq. ft.

But high square footage sales aren’t limited to pre-construction apartments. There are re-sale buildings along the Bay St. corridor and in the core that are also trading at over $1,000 per sq. ft., he said.

Market activity for new condos in the Toronto region has nevertheless reached an unsustainable pace, said Urbanation’s third-quarter report.

“At current prices, demand will begin to moderate. Higher levels of inventory will emerge and that will help settle the market activity down,” said Hildebrand.

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