January 20 - New condominium suite sales up 30 per cent in 2010

January 7, 2011

New condominium suite sales up 30 per cent in 2010

Greater Toronto, January 20, 2011 - More than 20,000 new condominiums were sold by Greater Toronto Area homebuilders in 2010 as high-rise new home sales leaped 30 per cent over 2009, resulting in the second-best year ever for that product type, the Building Industry and Land Development Association (BILD) revealed today.

According to RealNet Canada Inc., there were 20,349 new high-rise condominium suites sold in 2010, second only to 2007 when an astonishing 22,408 high-rise condominiums were sold. From a market share perspective, high-rise sales did establish a new record, accounting for 55 per cent of all new home sales in 2010.

While the high-rise housing market was surging, sales of low-rise (single-detached, semi-detached and townhome) product were slipping by 10 per cent. Combining the two product types, total new home sales in 2010 reached 36,803 units, up a smart 8 per cent over 2009 despite a weaker than expected December.

BILD President and CEO Stephen Dupuis attributed the strength of the high-rise housing market in the GTA to its relative affordability (compared with low-rise), changing demographics and, to some degree, consumer preference, superlative locations, great building designs and a very high level of standard finishes ("jewel boxes" as one condo builder put it).

"Within the last decade, the share of the GTA housing market captured by high-rise condo developers has steadily risen from one quarter, which was considered normal, to a third, which was called the new normal, to more than 40 per cent (we called that The Year of the Condo), to the point today where more than half (55 per cent in 2010) of all new home sales annually are high-rise condos," Dupuis stated.

"By historical standards, 2010 was a good, not great year, however the fact that the market exceeded all forecasts means that the industry was able to contribute its fair share, if not more, to economic growth, job creation and the tax coffers at all levels of government."

December '10

Low Rise

 

High Rise

 

Total

 

Region

2009

2010

% Change

2009

2010

% Change

2009

2010

%Change

Durham

158

127

-19.6%

4

4

0.0%

162

131

-19.1%

Halton

95

221

132.6%

18

24

33.3%

113

245

116.8%

Peel

338

277

-18.0%

58

108

86.2%

396

385

-2.8%

Toronto

63

28

-55.6%

1,819

390

-78.6%

1,882

418

-77.8%

York

283

301

6.4%

333

79

-76.3%

616

380

-38.3%

GTA

937

954

1.8%

2,232

605

-72.9%

3,169

1,559

-50.8%

Jan-Dec

18,369

16,454

-10.4%

15,627

20,349

30.2%

33,996

36,803

8.3%

Source:  RealNet Canada Inc.

With more than 1,350 members, BILD, formed through the merger of the Greater Toronto Home Builders' Association and Urban Development Institute/Ontario, is the voice of the land development, home building and professional renovation industry in the Greater Toronto Area.  BILD is proudly affiliated with the Ontario and Canadian Home Builders' Associations.
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