As months of slowing sales in new condominiums sees some projects push back their debut into late 2023, other developers are still going full speed ahead.
The sales environment may not also be as bad as may have been assumed. Toward the end of the summer there was industry speculation that close to 10,000 condo units would be delayed if interest rates continued to rise. Rates continued to rise, but the sales drop-off appears to have been much less severe than expected.
The Olive Residences by Capital Developments is among the first new condo sites in Toronto to launch this year.What did happen was a slowdown starting after the record-setting first quarter of 2022 , where quarter by quarter about 20 per cent fewer sales were recorded. The data isn’t in on the fourth quarter yet, but the trend appears to have continued.
Mr. Cowan is also not anticipating any need to offer incentives to move units, a practice that’s growing more widespread in the GTA. The latest sales figures for resale condos from TRREB show while the number of listings in December, 2022, were down 55 per cent year over year in Toronto, prices went up by 1.5 per cent. In the 905 markets, sales were down 47 per cent on the year and prices were also down 5.2 per cent.
When it’s 1/2 built you can’t stop.