Pre-sale condos in Toronto are heating up and they're selling for way more than resale units
It seems that amid the rising sales number and prices, those who've chosen to buy and then sell pre-sale units, rather than resell units in older buildings, are earning substantially more on their investments, and more than they would have even just one year ago.
According to data released in April from the market experts at Urbanation, the prices for new condos in the GTA had spiked 27 per cent in three years leading up the end of 2020, compared to resale condos, for which prices increased 18 per cent over the same period of time.
Those who bought pre-sale condos and decided to become landlords when they were finally built have also been able to charge higher rents compared to their mortgage and maintenance costs, the data says.
And the anticipated trend is that people willing and able to buy a condo years before the building is even constructed will continue to reap a greater return — which has been a pretty generally touted rule in the past, but seems to be even moreso now than ever.
Additional new information revealed by Urbanation includes the fact that a whopping 76 per cent of pre-sale GTA condos listed in the first quarter of 2021 sold by the end of March, which the firm considers an extremely high proportion not seen since the real estate heydey of 2017.
Pre-sale units sold thus far this year have also marked a new record average sale price of $1,261 per square foot, which is up 8.8 per cent from the same time last year.
At the same time, the number of new condos currently under construction in the GTA s at another record high in Q1 of this year: a total of 83,497 units.
Join the conversation Load comments