February 8, 2010 - New quarter four 2009 condominium sales in the Greater Toronto Area (GTA) numbered 6,295, a 36 per cent increase over the third quarter in 2009, which had 4,617 new unit sales, reports Urbanation Inc.
The 14,792 total new condominium sales in 2009, improved on 2008's total of 14,469 by two per cent.
"The fourth quarter 2009 sales were a record for in the CMA (Toronto Census Metropolitan Area), and the third highest quarterly total on record. These results were truly unexpected, quite a turnaround from the poor first half of 2009, and quite a cap to a booming decade of condominium activity," says Urbanation Editor and Executive Vice-President, Ben Myers.
"Much of the credit goes to the savvy developers that launched new projects with relatively moderate pricing, keeping suites affordable for first-time buyers. These purchasers see condominium living not only as a lifestyle choice but as an investment. Toronto CMA pricing has risen 88 per cent over the past decade, from $232 per square foot [for new units] in quarter one 2000 to $435 per square foot [for new units] in quarter four 2009," he adds.
Of some concern for the future is the considerable increase in added statutory costs introduced or planned by the City of Toronto, in the form of land transfer taxes, green roof legislation, minimum three bedroom unit requirements, and mandated 'free' TTC passes. This is in addition to the provincial/federal implementation of the HST, tighter construction lending practices, possible increases in required down payments, and shortened loan amortization periods, all of which could combine to reduce real and perceived affordability.
GTA condominium resale market in fourth quarter 2009 posted 4,215 resale units trading hands, the highest fourth quarter resale total on record. A total of 16,147 condominium units were sold in 2009, three per cent more than the previous record high of 15,652 in 2007, and 27 per cent higher than the 12,718 resales in 2008.
Pricing in the resale market rose 103 per cent during the past ten years, from $173 per square foot to $352 per square foot in fourth quarter 2009. The average price of a resale condominium in the Toronto CMA in quarter four 2009 was $324,000.