Riocan living. Apartments drive sales of new homes. Sales of new homes in the Toronto area in May, driven by condos, exceeded the average of the past decade by 5 per cent to 3661, and the benchmark price of new single-family homes has risen by more than 24 per cent over the past year.
The Association of Construction and Land Development (BILD) said that sales and development projects of new homes were affected by the global epidemic in May last year and would be biased if compared only with the same period last year. 2396 low, middle and high-rise apartments, stacked town houses (Stacked Townhouse) and duplex units (Loft) were sold in May, an average increase of 10 per cent over 10 years. 1265 new single-family homes, including independent, semi-independent, single-family houses and town houses, were sold, an average of 3 per cent less than in 10 years.
Ryan Wyse, manager of Altus Consulting, a consultancy commissioned by the association, pointed out that although sales of new condominiums (Condo Apartments) fell in May from an earlier frenzy, they were still above the 10-year average because demand remained strong and the market stabilized at a more sustainable level. Buyers continued to be attracted by the new orders, and about half of the new orders that went on sale in late May were sold in the same month.
The association said that the inventory of new homes in May was 12555, which is equivalent to 3.3 months of inventory in current market conditions, but a balanced market should have inventory of 9 to 12 months. Inventory includes the number of new housing estates that have been completed, are under construction and are about to start.
David Wilkes, president and chief executive of the association, said the low inventory in May highlighted the need for towns in the greater Toronto area to deal with chronic housing shortages. The municipal government should speed up the approval of projects with funds that can be started immediately. The population of the Greater Toronto area will continue to grow, and municipalities will have to assess the approval process for development projects to ensure that new housing estates can be built in a timely manner.
The benchmark price for co-managed housing in May was 1063973 yuan, up 8 per cent from the same period last year. Although the benchmark price of a single-family home is lower than in April, it still rose 24.4 per cent to 1380491 yuan in the past 12 months.