New condo developments toronto . How to invest in real estate in 2021? The market fluctuates in the uneven Toronto real estate market.
How to be a smart investor tests the grasp of the market cycle and professional improvement. The supply of new housing is the balancer of the market price and one of the indicators to judge whether the market is hot or cold. The pricing of new housing is not only based on the market benchmarking price, but also on the cost of developers. In this issue, Daisy Huang Lan tries to make a superficial analysis from the perspective of the cost of new Condo apartments in Toronto, hoping to help you change your way of thinking to observe the investment of Toronto apartments in the current environment.
Looking back to 2020, Canadian housing market prices were not negatively affected by the epidemic, on the contrary, house prices continued to rise in many of the big cities we are familiar with. The performance of the real estate market at home and abroad has proved that people still believe that holding assets is the hard truth in the environment of over-issuance of money.
If we take a closer look at the average price of newly built Condo apartments, the average price is close to C $1000 per square foot in the Greater Toronto area, and 2000 sq ft is no longer rare in the heart of downtown Toronto.
In terms of new housing transactions, independent houses and town houses have risen year after year in recent years. Due to the psychological impact of the epidemic, the volume of new housing transactions in 2020 has declined compared with previous years.
The number of new houses under construction is an important leading indicator of supply. We can see that inventory under construction began to have a downward trend, in which the decline in Condo construction is particularly obvious, indicating that the supply of new housing will decrease in the future.
Let’s first take a look at the original land price range of major cities in Canada (excluding relocation costs). We can see that it is the norm in downtown Toronto that more than 200 yuan per square foot is the norm. If the core of the city center, the price will be even higher, and now there is little space, then plus the relocation cost, it is normal to increase the land cost several times.
And not all the plots bought by developers at high prices can be used to build buildings, and the projected land area of high-rise buildings that can really be approved in downtown Toronto accounts for about 25% of the total land area.