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<\/a><\/p>\nPhoto: James Bombales<\/em><\/p>\n While home prices continued to underperform across most GTA property types last month, there was one notable exception \u2014 the benchmark price of a new condo jumped a whopping 25.4 per cent year-over-year to $758,370 in May.<\/p>\n \u201cBesides strong demand from new home buyers looking for more affordable options, the continuing increase in condo\u2026prices can be partly accounted to an increase in average unit size to 892 square feet from 814 square feet a year ago,\u201d reads the data release from the Building Industry and Land Development Development Association (BILD). \u201cThe average price per square foot [increased] to $850 from $743 last year.\u201d<\/p>\n But larger units aren\u2019t the only reason for the price bump, according to Fox Marin Associates broker of record Ralph Fox.<\/p>\n\n \u201cThere\u2019s been very low inventory when it comes to new construction condos for awhile now,\u201d he tells BuzzBuzzNews. \u201cWhen units come on the market, they go for very high prices.\u201d<\/p>\n Fox does agree with BILD\u2019s statement that buyers priced out of the low-rise market are likely looking to condos instead, a surge of demand which could account for the uptick in prices. But he also notes that the new construction condo market is driven largely by investors, who have other considerations in mind.<\/p>\n \u201cInvestors are thinking long term when it comes to the new construction supply pipeline,\u201d he says. \u201cWith the end of the OMB, there\u2019s a lot of speculation that there will be fewer projects in the pipeline in a few years. Developers will likely take a \u201cwait-and-see\u201d approach in the future, and if supply lowers considerably, that could drive new condo prices up further.\u201d<\/p>\n Still, he says it\u2019s hard to predict whether the market will continue to see such large year-over-year price gains, because it\u2019s largely dependant on the number of condo launches in any given month.<\/p>\n