Toronto developers began work on 24,388 units in 104 projects in 2012, according to new data released today by Urbanation in their fourth quarter market overview.
The number of construction starts in 2012 broke records in multiple categories.
There were 3,841 new condominiums sales in Q4-2012, an increase of 16 per cent over Q3-2012. Total new condominium sales for 2012 were 17,997, a significant drop from the 28,190 units sold in 2011. The sales total for 2012 was lower than the five year sales average, but slightly higher than the 10 year average.
Here are a few more highlights from the Urbanation market overview:
- Records broken in 2012 include: construction starts (24,388), active developments (355), total active units (89,251) and total units under construction (56,866).
- The average sold index price in the Toronto CMA was $536 psf in Q4-2012 (up 5.2 per cent annually).
- Active new condominium market is 79 per cent sold, down from 80 per cent in Q3-2012 and 82 per cent in Q4-2011, but above the 10 year average of 78 per cent.
- The resale condo market suffered from a lack of supply in Q4-2012. Only 3.2 per cent of the 227,700 units tracked by Urbanation were listed for sale in Q4.
- Resale activity declined 14 per cent quarterly in the Toronto CMA to 2,941 transactions.
- There were 15,292 condominium resales in 2012, down from the five year average of 15,609.
“Despite concerns over the level of unsold supply in the new condominium market, the ratio of sold to unsold units has consistently been above the long-run average in recent years” said Ben Myers, Urbanation Executive Vice President, in a press release.
“There remains confusion over unsold supply and standing inventory, to clarify, at the end of Q4-2012 there were just 613 completed and unsold new condominium apartment suites in the Toronto CMA — some would be rented out by the developer, some used for construction offices, and others used as model suites for subsequent phases, effectively lowering this standing inventory figure even farther.”
Where will we be heading in 2013? Urbanation is forecasting 17,000 new condominiums sales in the Toronto CMA for the year.