Toronto a tale of two condo markets

The Greater Toronto Area is a tale of two markets: high-rise condos, which are increasing in demand; and low-rise buildings, which are lacking in product and choice, says the Building Industry and Land Development Association (BILD).

Read: Condo buyers can’t afford fees: TD In the high-rise market, new homebuyers are still finding quality, affordable homes across the Greater Toronto Area (GTA). Choice in the high-rise market is a direct result of provincial public policy, which has an increasing emphasis on intensification, and the industry is adapting to the shift.

In January, new homebuyers purchased 686 high-rise units, most of which were sold in Toronto. Buyers interested in owning a new condominium in the 905-area found a variety of projects in York Region as well.

Read: Toronto project defies real estate softening trend The tale of the low-rise market is illustrated by constrained land supply and a lack of product and choice. According to RealNet Canada Inc., new homebuyers purchased 562 single, semi-detached and townhomes in the GTA.

“People still want to purchase a detached, semi-detached or townhome in the GTA and over the last few years, we have seen a reduction in sales of ground-related housing,” says BILD president and CEO Bryan Tuckey. “A typical January for the low-rise market would have seen more than 1,000 new homes sold across the GTA.”

Read: Housing affordability not a problem for most families

He adds, “The level of ground-related housing sales resulted in 1,248 new homes to be sold in the GTA — almost 1,000 below the long-term average. This is a direct result of reduced affordability and choice in the low-rise sector and illustrates the effect of public policy on the market.”

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The RealNet New Home Price Index indicated a 16% increase in the low-rise sector over January 2012 ($639,588). High-rise condominiums remained the more affordable option, with a 2% increase in the price-per-square-foot bringing the unit price to $435,722.

Staff

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