Tuesday, May 24, 2011

UrbanRental Report Launch a Tremendous Success

On Tuesday, May 17, 2011 Urbanation Inc. released its inaugural condominium apartment rental market overview for Q1-2011. The event took place at the Westin Prince Hotel and a packed house of over 80 brokers, developers, lenders, architects, land owners and consultants showed up to get the latest results on the condo rental market and the new condo market.




Released quarterly, the rental market overview will provide a wealth of information on the trends and changes in rental rates in the Toronto Census Metropolitan Area (CMA). See municipal results highlighted below from 24 Hours publication:


Other highlights of the inaugural rental market overview show that, among leased condominium apartments in the Toronto CMA, index rents increased by just 0.8% quarterly in Q1-2011, from $2.09 per square foot, to $2.11 per square foot. The average condominium unit leased in Q1-2011 was 800 square feet with an average rent of $1,686 per month

Overall, the new UrbanRental report for Q1-2011 shows that demand and the number of leased units in the condominium apartment rental market remains high, while the average days-on-the-market is low. Go to www.urbanation.ca/UrbanRental for more info and to subscribe.





For more articles regarding the UrbanRental report: 
Check out our latest Press Release.


Condo Maintenance Fees

In preparing data for a investing in real estate book by Brian Persaud of Real Experts (http://www.realexpertsinc.com/) we took a look at condo maintenance fees. We were also inspired to write this post based on an interesting article in the Globe this weekend on condo fees.

Urbanation looked at a sample of 90 new condominium apartment projects that were active in Q1-2006. These condo projects had an average (forecasted or projected) monthly maintenance fee of $0.40 psf, ranging from a low of $0.27 psf at St. Gabriel Village - Phase I (marketed as a green condo with Wind Turbines) to $0.67 at 100 Yorkville - East Building (a luxury project).

The average resale maintenance fee over the past year (Q2-2010 to Q1-2011) at these projects was $0.52 psf, or a 30% increase compared to 2006 (~6% annual increase). This is something all condo purchasers should keep in mind when budgeting.

The largest increases were found at St. Gabriel Village - Phase I at 91% (up to $0.52 psf - perhaps the green features were not saving as much as anticipated?), Radio City I at 86% ($0.35 to $0.65 psf), and The Fountains of Edenbridge at 81% ($0.36 to $0.65 psf).

Monarch Group's EQ1 and EQ2 in Scarborough have seen maintenance fees increase by just 6% and 4% respectively. Monarch has the reputation of including realistic occupancy dates and maintenance fees in their new project brochures and sales packages.

This type of data analysis will be part of Urbanation newest report "UrbanRental" and should be followed by any serious investor, go to www.urbanation.ca/UrbanRental for more details.

Tuesday, May 17, 2011

Urbanation Launches Inaugural Condominium Rental Market Overview

NEWS RELEASE

CONTACT:    Vicki Griffiths
                        Vicbar Marketing Limited
                        416-510-0073

TORONTO – May 17, 2011:  Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, today released its inaugural condominium apartment rental market overview for Q1-2011.

“We are excited to introduce this badly needed resource to the Toronto condominium market,” says Ben Myers, Urbanation Executive Vice President and Editor.

The UrbanRental report targets condominium developers, lenders, real estate brokers, investors, and anyone in the rental apartment business. Released quarterly, the rental market overview will provide a wealth of information on the trends and changes in rental rates in the Toronto Census Metropolitan Area (CMA).

“Until now, there has been a real void in the market for comprehensive data about condominium rental units across the CMA, especially on per square foot rental rates,” says Myers.  “With the increasing number of small condo units being bought by investors, this report will be essential for anyone who owns and rents a suite.”

Over 50% of new condominiums sold in the Toronto CMA are purchased by investors (buyers who do not intend to occupy their units) based on information compiled by Urbanation. With nearly 18,000 new condominium suites selling annually over the past five years, Urbanation estimates that an additional 7,000 suites will be added to the condominium rental pool annually over the next few years.

Highlights of the inaugural rental market overview show that, among leased condominium apartments in the Toronto CMA, index rents increased by just 0.8 per cent quarterly in the first quarter of 2011, from $2.09 per square foot, to $2.11 per square foot.  The average condominium unit leased in Q1-2011 was 800 square feet with an average rent of $1,686 per month.

Because Urbanation expects a record year for condominium apartment registrations in 2011, that additional supply is expected to keep prices from escalating. Index rents are up just 1.1% annually in the rental condominium market in comparison to 3.5% for resale condominiums and 8.4% for new condominiums.

“The price of new and resale condo units in the CMA continues to climb. Using our report, investors can monitor rental trends and figures to determine when and where to make a purchase that will offer the best return on their investment,” says Myers.

Overall, the new UrbanRental report for Q1-2011 shows that demand and the number of leased units in the condominium apartment rental market remain high, while the average days-on-the-market is low. Urbanation predicts the trend going forward will be continued flat rate index rent increases, and that index price appreciation in the new and resale condo market will outpace that of index rents.

Go to www.urbanation.ca/UrbanRental for more details.

- 30 -

ABOUT URBANATION

Urbanation is Canada’s leading condominium market research company. Since 1981, Urbanation has analyzed the Toronto condominium market, publishing the “industry bible” – Urbanation’s Condominium Market Survey. This quarterly report tracks new, resale and future condominium projects. Urbanation also provides the development community with essential consulting services, which include site and topic specific market studies and surveys.



Monday, May 9, 2011

URBANATION PROJECTS BUOYANT FIRST QUARTER IS PRELUDE TO STRONGER SECOND QUARTER IN CONDO SALES


NEWS RELEASE

CONTACT:     Vicki Griffiths
                        Vicbar Marketing Limited
                        416-510-0073

TORONTO – May 9, 2011:  Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, today released its Q1-2011 market overview.

The Toronto CMA new condominium market kicked off 2011with a bang, with 5,201 sales. That was just 214 sales shy of the record first quarter result from 2010. The resale market also showed a strong start in Q1, with 3,952 units sold, just 338 fewer than last year’s first quarter record of 4,290.

“These near record sales in the first quarter of 2011 mark a prelude to an even more vibrant second quarter,” says Ben Myers, Urbanation Executive Vice President and Editor. 

The most noteworthy result in the market was the 7,550 construction starts in the first quarter, while there are now a record number of suites under construction in the Toronto CMA at 37,706.  At the end of Q1-2011, over half of the 284 new condominium apartment projects and 73,643 units were under construction.  Just 17 percent of the new condominium suites in the CMA were unsold (12,272 units) matching the record low set in the first quarters of 2010 and 1986.

“This momentum will continue into the second quarter, when an estimated 45 new condominium projects, representing 9,500 units, will launch,” says Myers. “That’s a healthy increase over the just 23 new condominium towers launched in the second quarter of 2010.”

Meanwhile, the 17 new projects that opened in Q1 sold 63 percent of their 3,768 total units. That number far surpasses the average absorption rate for new projects in their opening quarters between 2006 and 2010 (49 percent).

Prices also climbed. The average price per square foot of unsold product in the Toronto CMA new condominium market in the first quarter increased 3 percent from Q4-2010, and 7 percent annually, to $543 psf.  Unsold index pricing was also up in the former City of Toronto to $650 psf and the Downtown Core to $739 psf.

Prices in the resale market also edged up by 2 percent over Q4-2010 to $382 psf, increasing the average resale index price in the Toronto CMA by the largest quarterly margin since the fourth quarter of 2009. Resale index pricing in the former City of Toronto was $509 psf with Downtown Core prices at $513 psf in Q1-2011.

Resale supply also declined, dropping far lower than the record 10,997 listings from one year ago to 7,490 resale listings in Q1-2011.

“The major infusion of new units in the second quarter of this year should moderate pricing increases, but Urbanation expects near record quarterly sales in Q2-2011” Myers added, “and an elevated level of project registrations, will also keep resale pricing increases temperate”.


ABOUT URBANATION

Urbanation is Canada’s leading condominium market research company. Since 1981, Urbanation has analyzed the Toronto condominium market, publishing the “industry bible” – Urbanation’s Condominium Market Survey. This quarterly report tracks new, resale and future condominium projects. Urbanation also provides the development community with essential consulting services, which include site and topic specific market studies and surveys.

urbanationinc.blogspot.com