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!
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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