While many "experts" have been voicing their concerns over the number of unsold condos in Toronto while new condos are springing up left and right, it turns out that those condos have been snapped up over the last few months. New Toronto condo research data from Urbanation shows that the number of unsold condos in the city have decreased quite a bit over the second quarter of 2015.
Urbanation says that a rush of baby boomers and young professionals over the last few months show people are looking for more affordable options, and demand for move-in units is high.
Unsold inventory decreased by 13 per cent over the second quarter of 2015 compared to the second quarter of 2014, to 17,709 units from 20,763. While the number of unsold condos still sounds high, only a small portion (1,425) are move-in ready with 1,000 more move-in ready units that should be completed by the end of the year.
Urbanation’s release says that developers are having a difficult time keeping up with demand over the last few months as well, with a big demand for buildings a few months away from occupancy. The condo vacancy rate is also very low, just over 1 per cent, driving demand even higher as many of these sold units will be rented out and not be resale units.
Over 20,000 new condominium suites are expected to be completed this year, and the number of new units per year is expected to drop down to more normal levels (13,000 to 16,000 units) by the end of 2017.