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A January 2014 report from Emporis, a construction industry researcher, showed that Toronto boasts 116 current condo construction projects as opposed to New York City’s 32. Despite the decline in new condo construction, prices for these units are soaring in Toronto’s metropolitan area.
It used to be that condos were more appealing to first-time buyers because of their price point.
However, prices for newly-built condos have shifted away from entry-level for first-time buyers.
Despite the impressive number of condo developments happening right now in Toronto, the number of new condo construction projects has declined. Builders are focusing on features instead of entry-level pricing for young buyers making their first real estate investments. The biggest drivers of demand are those I call downsizers: people moving from larger homes to smaller, more manageable residences.
These buyers are often going from a detached home on a nice lot, and they’re not looking to cram into a tiny building with limited amenities and space. The value in these condos, of course, is that you get the features without having to do the work of maintenance and upkeep.

So if you are a first-time buyer looking to buy a condo to get into the housing market, you will probably need to look at resales in existing units rather than at new developments.
See MoreFact of the DayBefore buying a home that needs to be renovated, evaluate the cost of renovations in order to prevent unwelcome surprises.
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Together with high housing prices in the GTA, condos are the buzz real estate topic coming out of Toronto.
That’s definitely a lot, but according to the CMHC, the number of new condo projects has declined by almost 40% since 2010. Builders are developing new luxury units, and people are paying more for them: the average Toronto condo size has gone from 816 square feet in 2009 to just 785 square feet last year.
Just a casual glance at the marketing materials for any number of new projects will give you an idea why. Developments in the works like 101 Erskine Condominium and The Harlowe are high-end, quality buildings that will fetch higher prices than condos used to. These can be baby boomers looking to relocate to smaller homes in convenient locations in preparation for retirement, or even young professionals who want to avoid long commute times.

These folks are looking for state-of-the-art fitness centres, pools, views and high-end finishings. While condos are still the vast majority of sales in the downtown core, keep in mind that builders are developing fewer units aimed at first-time buyers and entry-level prices. In 2009, the average price for a condo in Toronto (according to TREB) was $320,196, as compared to an average price of $381,008 in December 2013, a 19% increase.
Developers know that buyers are looking for gyms, rooftop terraces and pools in trendy, convenient downtown locations. Condos used to be the way for first-time home buyers to break into the Toronto housing market, and resale numbers of these existing condos are still high.

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