Demand for Toronto condominiums continued to push prices to new highs in the second quarter, even as a record number of units are set to hit the skyline.
A total of 5,992 new condo units were sold in the three-month period ended June, the third-highest total for a second quarter according to Urbanation Inc., a Toronto-based consulting company. The average price rose 2.8 percent from a year earlier to a record C$554 ($513) per square foot, even as the number of high-rise homes in the pre-construction, under construction and occupancy phases reached a high of 105,027 units in the city.
“The new condo market has performed well above expectations in the first half of the year,” Shaun Hildebrand, Urbanation’s senior vice president, said in a statement today. The market reflects “a sharp rebound in buyer confidence, a number of highly attractive new openings and a variety of incentives for existing inventory.”
The report adds to data showing positive sentiment in Canada’s largest housing markets, even as policy makers and economists voice concern that real estate may be overvalued and consumers may be taking on too much debt.
Nationwide, Canadian existing home sales also rallied in June, rising to the highest in more than four years as Vancouver and Montreal led gains.
Condominium resales in Toronto also reached a record in the second quarter, rising 12 percent from a year earlier to 5,238 units, according to Urbanation, which tracks data on new condominiums in the city, including sales, new developments, and prices.