- Ministry of Finance announces drop in non-resident home purchases
- Condo market still going strong, with prices up 21% Y-o-Y
- 328-unit Scarborough project set to bring 100+ affordable homes to City of Toronto
As the Greater Toronto Area continues to come to grips with its sizeable housing slump, multifamily home sales have added a layer of stability to compensate somewhat for the GTA’s crashing sales activity and stumbling prices, with year-over-year price gains reaching double digits, according to Toronto Real Estate Board data. While condo sales have continued to breathe life into the city’s rapidly cooling market, foreign buyer activity seems to have diminished following Ontario’s 16-measure Fair Housing Plan, launched earlier this year. Part of the same initiative, Scarborough saw the launch of a new 328-unit housing project, where 30% of homes have been earmarked for households earning no more than 60% of the City of Toronto’s average income.
Ministry of Finance announces drop in non-resident home purchases
The effects of Ontario’s much-discussed non-resident speculation tax (NSRT) are being felt across the Greater Toronto Area, with sales down throughout the region, according to new data released by the Ministry of Finance. Since its launch earlier this year, the NSRT seems to have cooled investment activity among foreign buyers significantly, with purchases involving at least one foreign buyer down to 5.6% in Toronto between May 27 and August 18.In comparison, foreign buyers accounted for 7.2% of all home transactions in the GTA before the launch of the province’s Fair Housing Plan, per the same source. The Greater Golden Horseshoe Region overall saw non-resident purchases slide from 4.7% to 3.2%.
Condo market still going strong, with prices up 21% Y-o-Y
While Ontario’s foreign buyer’s tax has made its effects felt across all types of homes, Toronto’s condo market has continued to post strong results. Apartments for sale remain in high demand, according to the Toronto Real Estate Board (TREB), taking up a 28.8% market share of all sales year-to-date, with the average price clocking in at $510,080 for condominiums compared to a year-to-date average of $1,134,148 for detached single-family homes.
Moreover, while total sales were down 34.8% year-over-year, TREB data shows a whopping 41.6% drop in sales for detached homes. By comparison, the GTA’s housing slump cooled down condo sales to a much lesser extent, with transactions down 28% year-over-year. Furthermore, condo prices saw a 21.4% price appreciation over the same period, while detached single-family properties ticked up a mere 0.3%.
328-unit Scarborough project set to bring 100+ affordable homes to City of Toronto
While the condo market’s resiliency is adding a touch of stability to Toronto’s shifting real estate metrics, affordable housing remains a hot topic in a city where many struggle to attain homeownership status. Because of this, many welcomed the news when the Daniels FirstHome™Markham Sheppard development broke ground. Located on 3.6 acres acquired from Build Toronto, the public-private partnership project will add 328 new condominium units and townhomes targeting first-time buyers. Moreover, 30% of units are earmarked as affordable housing, targeting potential buyers earning up to $90,500 per year – about 60% of the city’s median income.
5131 Sheppard Avenue is being developed by The Daniels Corporation and Toronto-based Diamond Corp., with the first move-ins set for spring 2019. The project will add 228 condominium units ranging between 443-square-foot studios and 1,053-square-foot 3-bedroom suites, and 100 townhomes. The latter will offer 528- to 1,172-square-foot homes in one-, two- and three-bedroom configurations.