Hold on to your butts! The Toronto condo market is about to be hit by a tidal wave of pre-construction launches. Never before have we seen this many new developments launching in such a short span of time. Across the city, from Water’s Edge in Etobicoke to DuEast in Regent Park, it is estimated that nearly 17,000 new units will come to market over the next two months.
What kind of projects can we expect?
Except for Kingly Condos, most of the new developments are large projects with 300+ units. There are also multi-phase proposals such as 215 Lake Shore Boulevard that are planned to provide 1,000+ new suites. We are also expecting to see a wide range of project styles, so whether you like luxury-living or community-living there should be something to check out.
We are excited for the continued community revitalization of Dundas Street East at Regent Park. Daniels DuEast is a new development planned for the intersection of Dundas and Sumach that is sure to further enrich the neighbourhood. Another project that has caught our attention is The One by Mizrahi Developments. It’s the project’s sheer boldness that has us smitten. Obviously, this condominium is not for everyone. It’s designed to be the tallest condo tower in Canada, one-of-a-kind, offering hyper-luxury living at Yonge and Bloor. It’s something we’ll probably never see again in Toronto.
10 notable pre-construction projects coming to Toronto this fall
*Condos.ca has VIP access to The One by Mizrahi. For more information, click here.
How will new pre-construction impact housing supply?
If you talk to anyone trying to rent a condo in Toronto right now you will probably hear concerns over Toronto’s limited supply of affordable housing. On the sale side, listings are starting to drop off while sales are on the rise towards that peak in October, an expected shift we explained in an earlier post on the market trends this fall. It is easy to assume that adding 17,000 units could help ease the pressure on the Toronto real estate market, but it’s not going to help anyone looking for a home. Not yet, anyway.
The 17,000 new pre-construction units coming up for sale over the next two months will not add to the number of available condos in Toronto. It will take anywhere from 3-7 years for these projects to impact Toronto’s housing availability. What might happen is that these projects will ease the pressure on buyers, shifting investors away from re-sale and into Toronto pre-construction, which could make the re-sale market more accessible to people looking for a primary residence. But the demand for housing will continue to be felt, as Ontario’s population continues to grow both on a local demand level and from immigration. It may mean that these 17,000 units get absorbed naturally, while prices are likely to keep moving upwards or at least stay steady. In any case, this surge in pre-con launches will not fix Toronto’s housing supply issue in the short run.
Greater competition for builders means greater variety for buyers
Like we said above, we’ve never seen this many projects launching in such a short span of time. One reason it might be happening is because the condo market is killing it right now. Within the whole real estate market in Toronto, condos are doing very well. Sold prices are rising, up on average 26.30% over last year, and people are still buying and selling. This flash-flood of project launches could be a sign that developers are trying to get units on the market right now while the condo market is driving Toronto real estate. It’s an ideal time for developers, but it’s also a significant risk.
Launching at the same time as other known projects means the level of competition escalates. Buildings will want to sell out, or else they will be seen to have a slow sale and buyer confidence will fall. Real value buildings, such as Kingly Condos, are likely to see success in this marketplace. The project is coming from a strong developer, in a great location, and it offers a boutique style design, complimented by a brick exterior that will help it stand out. Other developments that are lacking in these three main selling points will have a harder time among today’s market of discerning buyers.
At the same time, having so many launches at once increases the variety of options for buyers. It’s something Toronto buyers haven’t had for a long time within a market pinched of supply. Both inside Toronto proper and across the GTA, it’s a great time to be on the hunt for a condo investment or a future home. As sales in downtown Toronto are often aggressive, sales outside the downtown are usually cooler. With the number of projects coming out, buyers could get into a good building if they look outside the Toronto core.