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High-rise condo market shifts to 905
August 25, 2010
The high-rise condo market in the Greater Toronto Area continues to rise high while the low-rise 905-area market remains constrained by the acute lack of product available for sale, according to information released this week by the Building Industry & Land Development Association (BILD).
While high-rise sales in July this year slipped 10 per cent from July 2009, sales in the January-July period were up 104 per cent with 11,327 units sold, representing the second highest total (behind 2007 at 13,365 units) in the last 11 years.
In what may be the first signal of an emerging trend, BILD says, 46 per cent of high-rise unit sales in July were recorded in the 905 regions of the GTA.
“Toronto has consistently commanded an 80 per cent share of all high-rise sales while 80 per cent of low-rise sales have been in the suburbs,” says BILD President and CEO Stephen Dupuis. “However, that balance is expected to shift as municipalities start to conform with the Greater Golden Horseshoe Growth Plan.”
With continued strong sales, the high-rise price index rose exactly 10 per cent year over year, and currently sits at $430,782 compared with $391,673 last July.
Meanwhile, low-rise sales dropped 65 per cent from last July, although they remain eight per cent over 2009 on a January-July basis. The inventory of low-rise homes available for sale in the GTA remains near all-time lows.
“The shortage of supply of new, low-rise housing product is reflected in the fact that nearly two-thirds (65 per cent) of all new home sales in July were high-rise condos compared with the new norm of around 50 per cent,” said Dupuis, adding that the low-rise price index jumped 9.2 per cent year/year, rising from $447,950 to $498,088.
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