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.
“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.