The pre-construction market in Toronto has been booming in recent years, with developers launching a record number of new projects to meet the demand for new housing in the city. In this article, we\’ll take a closer look at the state of the pre-construction market in Toronto, including trends in supply and demand, pricing, and the types of properties being developed.
Supply and Demand
The demand for pre-construction properties in Toronto remains strong, with buyers seeking out new builds for their modern amenities, energy efficiency, and customizable features. According to the Toronto Regional Real Estate Board (TRREB), there were 3,024 new home sales in the Greater Toronto Area (GTA) in January 2022, representing a 37% increase compared to the same month in 2021. This trend is expected to continue, with TRREB forecasting a total of 55,000 new home sales in the GTA in 2022.
However, the supply of new pre-construction properties has struggled to keep up with demand, due to factors such as supply chain disruptions, labor shortages, and rising construction costs. According to the Building Industry and Land Development Association (BILD), there were only 4,541 new homes available for sale in the GTA in January 2022, representing a 33% decrease compared to the same month in 2021. This shortage of inventory has resulted in fierce competition among buyers and rising prices.
The average price of a new pre-construction property in Toronto has continued to rise, driven by the strong demand and limited supply. According to BILD, the average price of a new single-family home in the GTA was $1.8 million in January 2022, representing a 31.4% increase compared to the same month in 2021. The average price of a new condominium apartment was $947,182 in January 2022, representing a 10.4% increase compared to the same month in 2021.
Despite the rising prices, pre-construction properties remain an attractive investment for buyers, due to their potential for appreciation and the ability to customize the property to their liking.
Types of Properties Being Developed
Developers in Toronto are focused on meeting the growing demand for housing by building a diverse range of properties, including single-family homes, townhomes, and condominiums. Condominiums remain the most popular type of pre-construction property, due to their affordability and location in high-demand urban areas.
In recent years, there has been a growing trend towards mixed-use developments, which combine residential units with commercial and retail space. These developments provide residents with convenient access to amenities such as restaurants, shops, and services, and are often located in transit-friendly areas.
The pre-construction market in Toronto remains strong, with high demand for new properties driving sales and prices. However, the limited supply of new inventory has resulted in a competitive market, with buyers seeking out pre-construction properties for their customization options and potential for appreciation. With a diverse range of properties being developed, including mixed-use developments and single-family homes, there is something for every buyer in the pre-construction market in Toronto.