Pre-construction condo sales plummet 79% as market cools
-
Loading... - Grayson Bergeron
- 02 Nov 2022
- 68 Views
- 0 Like
- 0 Comment
Pre-construction condo sales plunged 79 per cent year over year in the third quarter amid soaring interest rates and construction costs that sent Toronto region developers to join their customers on the market’s sidelines.
Sixty-seven per cent of developments, 189 projects with available units, sold no condos in the third quarter, said development tracking market research firm Urbanation on Monday.
It calls into question the viability of a some projects, particularly those that launched a while ago and still haven’t met their sales targets to qualify for construction financing, said Urbanation president Shaun Hildebrand. Meantime, costs have continued to rise.
“But most projects have sold enough to proceed and they are fine with waiting for the market to come back in order to obtain the prices they are asking,” he said.
It was the biggest annual decline — apart from the start of the pandemic in the second quarter of 2020 — since the first quarter of 2009. That was the beginning of the global financial crisis, but Toronto’s condo boom was already under way by then.
But Hildebrand downplayed the prospect of a market crash, saying his company has been predicting for months that developers would end up delaying about 10,000 units this year. Read More...
