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keepark1

Condo Market Review (mid-2018)

I would like to take a moment to review the pre-construction condo market condition for the first half of 2018.


We'll talk about:

- market sentiment & trends

- pre-construction condo launch price for 2018



Let's start with Market Sentiment & Trends

There are 3 types of investors:

  • Bullish investors

  • Interested but do-not-have-money

  • Skeptics (waiting for market crash)


Bullish investors are mostly people who have made good profit in the past by investing in the condo market. They started with 1 condo, invested $80k and made anywhere from $40-$120k depending on the project. Then they bought 2 or more condos, saw even better returns as they approached 2017. Started with $80k, made $80-240k, most of them have $200-300k. So in 2018 as the average $psf of 1-bedroom units pass well over $1000psf, they understand that the prices are record high, but are confident the market will continue to go up at a slower pace. Usually in their 30's to 60's.


Interested but do-not-have-funds are those who sooooooooooo want to buy a condo, but they just don't have the money. Usually very savvy with the condo market, they know what they want, which condo's are good, market prices, which projects are coming up etc. Often times they are in their 20's to 30's and have parents who have the funds to invest but the parents are not well-versed in the condo market. Also they have not bought a condo before so they are prone to fear-of-unknown, fear-of-market-crash, looking for unrealistic deals in the market. Once they make the leap and invest and make a good profit, they will turn into bullish investors.


Skeptics are the most sour of them all. They had the opportunity to buy something in the past but did not pull the trigger because of lack of confidence in the market. So they decided to wait and watch. Next year comes, they see that the prices have gone up and cannot believe the new record-breaking price. They still have the funds to invest, but they again hold back thinking that it's too expensive. (especially compared to prior year when they could've bought at a lower price) So they wait again, same thing happens and after a few years, they are just waiting for the market to crash. Did not make a cent, probably not likely to buy anything.



So....


The market trend is this:




Now,

as an agent looking at project launches daily, I find that some of the best deals are inventory units in older projects. For example, Great Gulf had a special event for 357 King W, Monde, Home for a week, on the first day all the small units were sold out. Priced very competitively.

It's really unfortunate that only bullish investors get the hands on these great deals because the nay-sayers are not looking. People with money and who are driven to make money get better investments. If you want these deals, you have to have money on hand, express that you are looking for something and when something does appear, show up and buy asap.




Below are major project launches this year and their prices.

Hope it give you a better feel for current prices and provides value to you.


Thank you!

If you'd like to subscribe to my newsletters, CLICK HERE

email: kee@condoanalyst.ca

mobile: 416-493-3955







Zen King West by Centrecourt

King West (19 Western Battery Road, Toronto, ON)

April 2018

32-35 floors

1B: $900-970psf

1B+D: $900-970psf

2B: $892-917psf

2B+D: $886-899psf


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Playground by Fernbrook & Cityzen

King West (30 Ordnance Street, Toronto, ON)

March 2018


1B:

$875 on 3rd floor,

$924psf on 30th floor


1B+D: $864 on 4th floor


2B:

$891 on 6th floor,

$929 on 28th floor


2B+D:

$865 on 6th floor,

$889 on 30th floor


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INDE by Menkes


Dundas East (219 Dundas Street East, Toronto, ON)

April 2018


1B:

starting $953psf


1B+D:

starting from $941psf


2B:

starting from $939psf


3B:

starting from $935psf







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DuEast by Daniels

Daniels DuEast (Sumach Street, Toronto, ON)

May 2018, final release

from 5th floor

1B:

starting from $834psf


1B+D:

starting from $804psf


2B:

starting from $790psf


2B+D:

starting from $804psf



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Uovo Boutique Residence






Yonge and Eglinton (2114 Yonge Street, Toronto, ON)

Private Developer

April 2018


1B+D:

$1022-1024psf


2B:

$1035-1200psf


2B+D:

$1049-1215psf


3B+D:

$1255-1397psf


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Pavilia Towers by Times Group

HWY 7 & Bayview

Feb 2018

(Parking & locker included in price)


1B:

starting from $679psf


1B+D:

starting from $650psf


2B:

starting from $654psf


2B+D:

starting from $660psf


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Sugar Wharf by Menkes

Lake East (95 Lake Shore Boulevard East, Toronto, ON)

Jun 2018


1B:

starting from $996psf


1B+D:

starting from $985psf


2B:

starting from $931psf


3B:

starting from $1103psf



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AquaLuna by Tridel



Lake East (Bayside Toronto Community | Merchants' Wharf, Toronto, ON)

May 2018


2B:

starting from $1000psf


2B+D:

starting from $1202-1749psf


3B:

starting from $1904psf





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