Sales of new condos jumped to a near-record in the Toronto region in the second quarter of 2019 amid lower borrowing costs, with most growth coming outside of the city core.
Sales surged 77% to 8,902 units from the same period last year, according to market research firm Urbanation Inc. That’s the second-highest level on record for the quarter, following the market peak of 11,413 pre-sales in the second quarter of 2017.
Sales in the suburbs doubled from last year, while dropping 12% in the core, the lowest for that quarter since 2009. That could be due to higher costs and a jump in purpose-built rentals.
The activity was driven by a return to record-low borrowing costs, record-high population inflows, a healthy job market and tight conditions in the resale market, but also a huge shift in demand to relatively low-cost projects.
Of particular importance, virtually every project launched for pre-sale in the second quarter had received planning approval, reducing the risk of cancellations which have been on the rise over the last couple years.
Developers can’t build quickly enough, more affordable units that buyers can rent out however and whenever they want, no strings attached.
Customers nowadays are becoming savvier, they are looking for a combination of returns and easy cash flow, flexibility, and a great price.
Upcoming and recent projects have been offering some of their purchasers the option to lease out their unit during interim occupancy.
You might ask yourself, what is interim occupancy? – Interim occupancy is the period of time between the day you occupy your unit (move-in) and the day you take ownership (close). One of the reasons for interim occupancy is to allow the builder to focus on the sold suites and some of the common elements before the building is registered.
Some of the projects which offer this incentive include:
- 36 Zorra (by Altree Developments; Etobicoke, The Queensway)
- Coming Soon: Nordic Condos (Collecdev; Wilson Heights)
- 250 Lawrence (Graywood Developments; Bedford Park)
Other incentives developers offer include capped development charges and levies, reduced assignment fees, locker and parking, and many more. Not to mention, exclusive incentives offered directly by our team. Reach out and we just may share 🙂
