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The Market of New Constructions in Toronto: October’s Five Hottest Projects
Mon Oct 07 2019
The condominium market continues to rapidly rally upwards. In the first half of this year, there was an impression that prices would slow their growth due to the release of many new building projects. However, in the middle of the year it became clear that nothing would change in the near future. The demand for new projects is so high that it continues to exceed the supply by several times. The majority of apartments in new constructions are sold out in a flash within the first few days after sales begin. For the first six months of 2019, condominium prices rose by more than 6%. After the traditional summer slack, the market is in motion again. By the end of 2019, we will definitely see a two- digit figure in the price hike graph. This year, the market completely digested a large number of projects and the most interesting events will occur in the next two years. After all, developers are simply unable to release several projects on an annual basis; they need to complete previous constructions which has already been sold, and only then move forward. Almost all forecasts unanimously predict that in the next two years, there will be a decrease in the number of projects that will go on sale. Due to the constantly growing demand, this is likely to result in a sharp price increase. Five years ago, when a one- bedroom apartment in downtown Toronto could be purchased for less than 350 thousand dollars, many people did not take my forecasts seriously where I predicted that it won’t be long before such an apartment would cost a million dollars. Today, apartments in new projects in downtown cost from 600 thousand to a million dollars, depending on the location and the project itself. Judge for yourself whether such prices are acceptable. A similar apartment in a luxury construction project in Manhattan costs approximately one and a half million US dollars, which is about two million Canadian dollars. The picture is the same – or worse – in many cities around the world.