Sales of new condos jumped to a near-record in the Toronto region in the second quarter amid lower borrowing costs, with most growth coming outside the city core.
Sales surged 77 per cent 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 per cent in the core, the lowest for that quarter since 2009. That could be due to higher costs and a jump in purpose-built rentals, Urbanation said.
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,” Urbanation said in a statement. “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.”
The average selling price for new units rose 10 per cent in the second quarter from a year earlier to $797 ($606) per square foot.