![\"\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2021\/11\/905-condo.jpg\")
<\/a>Photo:\u00a0chiyacat<\/a> \/ Adobe Stock<\/em><\/p>\nYou might associate rising condo prices with downtown Toronto\u2019s high-rise neighbourhoods, but new insights from Zonda Urban<\/a> (formerly Urban Analytics) tell another story.<\/p>\n The Greater Toronto Area\u2019s 905 region \u2014 an area that is characterized by the municipalities surrounding the City of Toronto \u2014 have seen newly launched condo prices grow to $1,000 per square foot. This is thanks to climbing construction prices caused by supply chain challenges<\/a> and a strong rental market, among other contributing factors.<\/p>\n\n Pauline Lierman, Zonda Urban\u2019s vice-president of market research for Ontario and Quebec, gave Livabl<\/em> the 411 on new condo price trends in the 905 region.<\/p>\n You mentioned to Livabl<\/em> that new construction condominiums in Greater Toronto\u2019s 905 region have reached over $1,000 per square foot (PSF). Which areas and communities are seeing the highest levels of price growth?<\/strong><\/p>\n The GTA has formed a comfortable new geographic ring where newly launched projects will exceed $1,000 PSF. These are mostly comprised of the largest 905 municipalities.<\/p>\n For example, new launch prices have reached $1,150 PSF in the Vaughan Metropolitan Centre area and nearly $1,250 PSF within the Mississauga City Centre. New projects in Erin Mills in Mississauga and along the Trafalgar Road corridor in the Uptown area in north Oakville have reached $1,000 PSF. We have even had new openings in Milton \u2014 typically a more \u201caffordable\u201d pocket for condominium apartment development \u2014 at $1,000 PSF.<\/p>\n When looking at the data, how quickly have new condominium prices accelerated to over $1,000 PSF over the last year or so? Was this increase occurring gradually or did it evolve suddenly?<\/strong><\/p>\n Price acceleration in the 905 markets has not been a sudden evolution. Although, the pace of growth has ramped up since mid-2020. For example, we saw new launches of similar building typologies in Oakville jump $120 PSF between mid-2019 from the low $700 PSFs and mid-2020 to mid-$800s PSF, and now we are in the $1,000 range. Larger gains, but not a new trend since 2020. It\u2019s strengthened in the two-year interim.<\/p>\n What would you attribute as the main driving factors that have pushed condo prices over $1,000 PSF? Is this related to rising construction prices, low supply or surging buyer demand?<\/strong><\/p>\n All of the above. Supply has not really bounced back to the 15,000 levels seen pre-2017. A strong rental market (outside of the COVID-19 impact which the market is rapidly recovering from), and rapidly rising construction costs compounded by the supply chain issues are all having an impact.<\/p>\n Where are prices projected to go from here? Do you imagine a scenario where they will come down, or is $1,000 PSF the new norm?<\/strong><\/p>\n Unless the pressure on pricing due to the low supply scenario improves, I would expect that pricing will continue to escalate. I would caution, however, that the market has seen sharp rises then periods of flatter growth (for example, 2004 to 2006 and 2013 to 2015).<\/p>\n The market in downtown Toronto for a typical project has been hovering around $1,400 PSF for the past 18 months, yet new launches in the Bloor-Yorkville neighbourhood around $2,000 PSF may allow some room for downtown values to rise. I am watching the 905 markets in particular to see where price resistance could finally set in. Several of these have seen gains upwards of $150 PSF since early 2020.<\/p>\n Pauline Lierman, Zonda Urban\u2019s vice-president of market research for Ontario and Quebec, gave Livabl the 411 on new condo price trends in the 905 region.<\/p>\n","protected":false},"author":49,"featured_media":221174,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","apple_news_api_created_at":"2021-11-18T14:30:20Z","apple_news_api_id":"f9b02705-9992-453a-b95b-e42aaf407782","apple_news_api_modified_at":"2021-11-18T14:30:21Z","apple_news_api_revision":"AAAAAAAAAAD\/\/\/\/\/\/\/\/\/\/w==","apple_news_api_share_url":"https:\/\/apple.news\/A-bAnBZmSRTq5W-Qqr0B3gg","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_is_hidden":false,"apple_news_is_paid":false,"apple_news_is_preview":false,"apple_news_is_sponsored":false,"apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"middle","apple_news_slug":"","apple_news_sections":["https:\/\/u48r14.digitalhub.com\/sections\/09b86915-7d2b-3acd-915b-b215002d01b7"],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[11108],"tags":[11163,11198,3595],"coauthors":[10332],"apple_news_notices":[],"yoast_head":"\n<\/a>Photo: James Bombales<\/a><\/em><\/p>\n