With more storage units and homes being built in the Greater Toronto area to accommodate the city’s growing population, the building boom is particularly strong in condominiums.
According to Urbanation, an organization that tracks Toronto’s condo market, sales for condominiums skyrocketed in the fourth quarter of 2010, going from 3,805 in the third quarter to 6,280 between October and December.
“There was a huge jump in sales and that was directly relatable to the fact that we had 29 new projects and 6,500 units that launched in the fourth quarter,” says Ben Myers, executive vice-president and editor of Urbanation, in an interview with the National Post. “A lot of those were large-scale projects and a lot of them did fairly well.”
The report found that investors are the ones mainly driving the increase in condominium sales and construction projects, but a separate report from TD Bank Trust found that baby boomers are buying condos at a prodigious rate as well.
Despite the increase, the report indicates Toronto sales will slow in 2011 compared to 2010. Earlier this month, representatives from Scotiabank said home sales will be more balanced in 2011, starting off strong but slowing down later in the year.