GTA – Another View of the Condo Pipeline

Total high rise units under construction in the GTA has spiked to about 59,000 units as of the end of August 2012……

These 59,000 units are contained in 225 projects with a combined 7,041 units of remaining inventory which makes them 88% sold out….

Obviously this high level of units and projects under construction is due to the very strong high rise sales of the past several years. There were almost 65,000 new high rise sales in the three years of 2009, 2010, and 2011……

But, we’re also seeing a very low level of completions. The rolling 12 month total number of units available for occupancy has slipped to a measly 9,000 units as of the end of August 2012……

Adding in scheduled completions for the rest of the year (of which some will slide into next year) we’re only looking at 13,400 completions (at most) of new high rise units this year.

Perhaps projects were delayed starting back in the financially troubled times of late 2008 and early 2009, or there are so many projects under construction right now that available construction resources are spread too thin thus slowing down the rate of completions.

This was a quick post but I’ll try and add some additional perspective with other data points soon…

About Steven Hurst

VP Analytics, RealNet Canada
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