The GTA’s march toward greater and greater density is nowhere more apparent than the yawning gap in prices between low-rise and high-rise homes. According to RealNet’s August numbers, the GTA recorded a new high in the disparity between the price of a new house and new condo.
The gap between the two property types averaged $75,000 from 2004 to 2011. Last month that difference hit the new record of $222,000.
Currently, the price of a new high-rise in the region sits at $436,789, a number that rose just 0.1 per cent from August 2012. Compare that to the 8.1 per cent price boost for low-rise homes in the last year, which now have the record high price of $658,938.
August saw 663 high-rise sales, down 18 per cent from the same time in 2012 and down 46 per cent from the ten year average. The total is also the lowest number of sales in the last decade. Compared to the ten year average, the 777 sales counted for new low-rise homes represented a 43 per cent fall. However, the amount of sales was a 32 per cent increase from August 2012.
Though there have been concerns about high-rise oversupply, the new stats suggest that trend may be slowly reversing. High-rise inventory has been down by 10 per cent since May with 21,028 new units on the market. August was also the fourth month in a row to see a decline in high-rise inventory. However, we’ll have to wait until the busy fall season starts up to see if new condo launches bring the supply numbers back up again.
For more info see the graphs below…
Photo: Nelson Wu/Flickr