A slow month or an end to Toronto's condo boom? What new homebuilding data may mean<\/a><\/strong>\r\n <\/div><\/p>\nThe development is just one example of a growing trend. According to a report commissioned by the Federation of Rental-housing Providers of Ontario, more than 1,000 planned purpose-built rental units have been converted to condos since the provincial policy came into effect.<\/p>\n
The report also found that 20,000 of more than 28,000 planned purpose-built rental units in the GTA were under review as a result of the policy change. <\/p>\n
\u201cThe introduction of rent control was the main catalyst for many of these developers to convert planned rental units into condos,\u201d Urbanation senior vice president Shaun Hildebrand tells BuzzBuzzNews.<\/p>\n
Hildebrand says that, while the number of proposed purpose-built rental units continued to rise in the second quarter, the pace of growth had slowed. <\/p>\n
From April to June 2,453 units were proposed, but July to September only saw 1,719. <\/p>\n
He says developers are increasingly drawn to the new-construction condo market, which he describes as \u201ctoo good to pass up.\u201d<\/p>\n
\u201cThe decision to convert is made easier by the allure of the condo market, which has seen values jump by 30 per cent in the last year,\u201d says Hildebrand. \u201cWhen you consider the demand in the market for new-built condo units, and versus the relative lack of supply, it\u2019s an obvious incentive for developers.\u201d<\/p>\n
Urbanation\u2019s latest report, released last week, found that condos listed for rent in the third quarter were leased within the shortest amount of time on record, at an average of just 10 days, while the ratio of leases-to-listings sat at an all-time high of 88 per cent. <\/p>\n
\u201cI think moving forward you\u2019re going to continue to see condo owners supply units into the sector,\u201d says Hildebrand. \u201cBut that being said, in order to create the amount of units needed to address affordability issues in the market, we feel that purpose-built development needs to be twice as high as it is right now.\u201d <\/p>\n
Completion of the King Portland Centre is scheduled for early 2019. <\/p>\n
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