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Real Estate


Toronto’s record-breaking condo market spurs more unchecked optimism and dire warnings

(Image: Seekdes from the Flickr pool)

Toronto’s gravity-defying condo market continues to set records. Over 6,000 freshly built condos were sold in Toronto in the first quarter of 2012, the highest number for the January-to-March quarter ever, according to the latest stats from Urbanation. On average, condos are getting smaller and more expensive (makes urban living sound delightful, doesn’t it?), and Toronto had 338 active projects in the first quarter, compared to 284 for the same period last year. Stephen Diamond, CEO of developer Diamondcorp, told the Globe and Mail that he’s so confident about the market he’s raised $130 million for more condo construction. “We’re not supplying too many units,” he said, saying that immigration trends and a slowdown in single-home construction should keep demand for condos strong. Still, speculation about a slowdown continues—Finance Minister Jim Flaherty expressed concern over Toronto’s condo market earlier this year, suggesting that developers seem willing to build new development right up until the bubble bursts—and based on Diamond’s comments, he’s probably right. To recap: the condo boom is inspiring both optimism and anxiety…just like it did last year. [Globe and Mail]