For the past three years we have done a survey of our clients, plus selected other lenders, brokers, and developers that are active in the new condominium apartment market in the Toronto CMA.
Here are some quick highlights from the December 2012 questionnaire:
1) 53% of respondents expect 17,500 to 20,000 new condominium apartment sales for the Toronto CMA in 2013. In 2011, 41% of respondents answered the same way - there were 17,997 new condominium sales in 2012.
2) Just over 1/3 of respondents think investors make up 45% to 60% of buyers of new condominiums, which was the top response. 60% to 80% was the top response in our December 2011 survey.
3) 34% of respondents think the biggest concern in 2013 will be a flattening or decrease in condo prices in 2013. A further 18% think construction lending will be more difficult to obtain this year.
4) There is also concern among 37% of respondents that incomes are not keeping up with growth of condominium pricing. 23% of those that took the survey think there will be less investors in the market this year.
5) 36% of respondents think the new mortgage rules had the greatest negative impact on their bottom line in 2012.
6) 91% of respondents of our survey think media reporting on the condominium market in Toronto is skewed negative and stories are sensationalized.
7) 1/4 of respondents think the best new condominium launch strategy in 2013 is to wait until market conditions approve and keep the project the same, while 24% think prices should be lower and the project scale and scope kept the same.
8) 53% of respondents think 6-8 storey condominium projects on the avenue is the next big market opportunity in the Toronto market.
For full results of the 2012 survey, click here.
For full results of the 2011 survey, click here.
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