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.
“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 will be the second half of next year before the downturn in sales and new project launches impacts construction, he said. Until then, developers will be busy with the 96,510 condos they sold previously and are already building.
“Ultimately, investors have a pretty strong outlet in the rental market,” said Hildebrand. “If they want to hang onto their unit and they have a long-term time horizon, then they’re not too dissuaded from having some negative cash flow or waiting for the unit to recover in terms of its priceDespite low sales and delayed launches, the inventory of condos also continued to decline and that’s helping push prices up, he said.
Wouldn’t be because there are THOUSANDS of empty condos in TO
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