
Urbanation just released its Q3-2020 market update for the Greater Toronto Area and the data is very encouraging for the new condo market. Here are some of the highlights:
There were 6,730 new condominium unit sales in Q3. This represents a 30% year-over-year increase.
More of this growth happened in the suburbs (905) with 3,834 units sales vs. 2,536 unit sales in the City of Toronto (416).
Of the 6,694 units that launched for sale in Q3, about 3/4 of them sold. This is the highest absorption rate since Q4-2017.
The average selling price for a new condo launched in Q3 was $1,044 psf (GTA average). This is up 3.5% compared to last year.
New launches in the suburbs sold for an average of $915 psf. New launches in the City of Toronto sold for an average of $1,275 psf.
I reckon that many of the people purchasing right now are looking through and to the other side of this current macro environment. They recognize that things will get better and that the Toronto region will continue to thrive. That's certainly how I'm thinking about it.
For the full Urbanation news release, click here.
Photo by Warren Wong on Unsplash
The big news this week in Toronto planning & development is the province's decision to approve three downtown development projects using a tool known as a "ministerial zoning order." The impetus for doing this was to speed up the approval and delivery of about 1,000 affordable housing units (along with about 2,000 market-rate units).
The province has made it clear that it wants to do what it can to reduce red tape and unnecessary delays when it comes to building new affordable housing. But this, not surprisingly, upset a number of local councillors who feel the province is overstepping and not allowing the city to govern its own city building affairs.
Alex Bozikovic's view in the Globe and Mail this week was: hey, maybe that's not so bad. The planning process is painfully slow (and political). And Toronto is going to need a lot more housing over the coming years and decades. So why not speed up its delivery? Especially when there's an affordable housing component and the architecture is exemplary.
The reality is that our housing delivery system is rife with tensions. A big part of the process is predicated on local voters, who already live in a particular place, opining on their own interests and on the interests of people who don't yet live there. The incentives in place are anything but aligned.
We can debate which level of government should have more power and what might be considered an unnecessary delay, but what is clear to me is that it should not take 2-5 years to get new housing approved in this city.
I just finished reading about an apartment building in Los Angeles that is currently retrofitting its amenity spaces to include, among other things, an appropriately spread out co-working space, two podcast rooms, and a TikTok studio. This latter amenity will be a roughly 100 square foot room with camera-ready lighting, tripods, and mirrors. It was described in the article as the perfect place for one or two people to create things and entertain themselves.
The gist of the article is that home offices are the new must-have amenity and that developers have started to rethink apartment amenities in light of this. But I also take this to be a sign of the times. We are living in a world of content creation. Whether you're a so-called influencer or not, TikTok has, for a lot of young people, replaced many other forms of entertainment and everybody, at this point, probably needs their own podcast.
It is also true that there's an "amenities arm race" going on within the apartment sector. This is nothing new and doesn't have much, if anything, to do with this pandemic. Amenities have been how you differentiate your offering. And when you're constantly selling (i.e. leasing all the time), they do become important. So here's to podcast rooms and TikTok studios. If you had your pick, what kind of amenities would you like to see in your building?
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