If you are looking to buy a new condo in Toronto, you probably have picked up a copy of The Condo Guide magazine. These free, bi-monthly full colour magazines are more or less 100% advertisements bought and paid for by Toronto’s numerous condo developers with a few “articles” thrown in for good measure by industry insiders.  The magazine is distributed by the Trader corporation and is available on corner newstands all over the city.

Their current website is pretty much useless as a search tool for condo buyers, but they are working on creating a new website called HomeTrader (currently in beta), that so far looks pretty promising. .

I took a look through the site and found that the mapping feature was quite intuitive, granted that there are currently very limited ‘listings’ of new condos available, it could be a great site for new condo buyers to search for and research various condo developments.  Take a look at Hometrader.ca and let me know what you think.

This site to me is far more user friendly and has a better search engine ‘backbone’ than the much maligned new Realtor.ca website. I wrote an article about the new Realtor.ca website for BlogTO back in July of 2008, and that article has now received over 270 comments and was the 7th most viewed article of the year for BlogTO - a blog that publishes thousands of articles every year. Consumers are outraged at the new Realtor.ca and many wish that the Canadian Real Estate Association would simply switch back to the old clumsy yet reliable MLS.ca. The whole situation kind of reminds me of Microsoft’s problems with the public’s acceptance of Vista and many ‘downgrading’ to Windows XP instead of trying to wrestle with the new operating system for PCs.

They just released their sales statistics for new homes and condos sold in November. For Toronto, 789 high rise condos were sold. At first glance this number sounds pretty high, but when you hear that in November of 2007 1922 new condos were sold in Toronto, this means that sales this November were down 59% versus last November. This is very consistent with the numbers for November’s resale market, where downtown west condo sales were down 61% and downtown east 51%.

We have surpassed the 15,000 mark for condos sold in the GTA for 2008 so far. We will likely end up with about 15,500 condos sold in 2008, which is far off of 2007’s record pace of 22,000, but pretty much dead-on with previous predictions from new development tracking company, Urbanation, who was calling for around 16,000.

Click here for the full press release, or continue reading.

TORONTO, Dec. 22 /CNW/ - There were 1,638 new homes and condos sold in
the Greater Toronto Area in November, Michael Moldenhauer, President of the
Building Industry & Land Development Association (BILD) said today.
    Moldenhauer noted that November sales were down appreciably from the
heady days of 2007 prior to the onset of the global financial turmoil yet
remarkably resilient in that context. "The fact that more than 1,600 new
homebuyers signed on the dotted line despite all the distracting factors in
November represents a very encouraging vote of confidence in the GTA new home
market," he said.
    Moldenhauer projected that new home sales would end the year at around
28,500 total sales, down approximately 35 per cent compared with 2007, which
he described as a "reasonably solid performance given the circumstances
prevalent throughout much of the final third of the year."
    Mr. Moldenhauer pointed out that growth in high-rise unit sales has
continued throughout 2009 with 55 per cent of the market now captured by this
product type. "The continued growth of high-rise sales is reflective of higher
order provincial policy on intensification combined with the relative
affordability of the product type," Moldenhauer concluded.

    <<
    -------------------------------------------------------------------------
              Low Rise             High Rise               Total
     November
    ---------------------    %     ------------    %    -------------    %
                          Change                Change                Change
    Region   2007   2008           2007   2008           2007   2008
    -------------------------------------------------------------------------
    Durham    223    139  -37.7%     12     10  -16.7%    235    149  -36.6%
    -------------------------------------------------------------------------
    Halton    291     91  -68.7%     32     22  -31.3%    323    113  -65.0%
    -------------------------------------------------------------------------
    Peel      311    287   -7.7%     86     16  -81.4%    397    303  -23.7%
    -------------------------------------------------------------------------
    Toronto    88     35  -60.2%  1,922    789  -58.9%  2,010    824  -59.0%
    -------------------------------------------------------------------------
    York      682    121  -82.3%    227    128  -43.6%    909    249  -72.6%
    -------------------------------------------------------------------------
    GTA     1,595    673  -57.8%  2,279    965  -57.7%  3,874  1,638  -57.7%
    -------------------------------------------------------------------------
    Jan to
     Nov   20,442 12,442  -39.1% 22,015 15,053  -31.6% 42,547 27,495  -35.4%
    -------------------------------------------------------------------------

Coming soon from Goldman Group and Lash Development Corp: 530 St Clair Ave. West Condominiums.

This will be phase 2 of “The Forest Hill” development by Goldman Group and Lash Development Corp. Construction for phase 1 (500 St Clair Ave West) is well underway with occupancy slated for late 2009.

Located at the corner of Bathurst and St Clair, just a block away from the St Clair Ave West subway stop, 530 St Clair Ave West will be a 22-storey tower with 158 one and two-bedroom suites. 

For more information and to be first to receive floor plans and pricing for 530 St Clair Ave. West, please contact me.

I have a client who is in the middle of purchasing a new condo and we are currently in our 10-day rescission period. I am helping my client do their due diligence in reviewing their contract with a lawyer, making sure the financing is in place for the deposits as well as the mortgage, answering any questions that come up, and generally making sure they are totally comfortable before moving forward and finalizing the purchase.

In the course of our due diligence, this particular client had some concerns about occupancy fees or ‘phantom rent’ as it is also known. Whenever you purchase a new condo, there is a period of time between when you take occupancy of your unit and when you take ownership of your unit. This is known as the ‘occupancy period’ or ‘interim occupancy’.

You can’t own something that doesn’t exist, and in real estate in Ontario, a property does not exist until it is entered into the Land Registry system (until it is ‘registered’). This process takes some time in a new condo because there are often hundreds of units to register at the same time. 

Once your unit is ready and liveable, you take possession of it, but not ownership. You must pay the developer for the right to live in the unit (no free lunch). The amount of the occupancy fees is roughly equivalent to the interest on the amount outstanding on the purchase price. For example, a $300,000 condo with 25% down means you must pay monthly occupany fees roughly equal to interest payments on $225,000.

The occupany period ends when the building is registered, your mortgage kicks in, and you get the deed to your property.

So should you let the occupancy fees deter you from purchasing a new condo? Absolutely not! Here are 5 things to know about occupancy fees:

1. Occupancy fees will have to be paid to the developer every time you purchase a new condo.  It is normal and there is no way around it. 
2. The occupancy period is normally 3-6 months, but the higher up you are in the building, the shorter the occupancy period will be. So if you buy a unit on the ground floor, you can expect a long occupancy period. If you buy the penthouse, you will likely have a very short occupancy period.
3. There is no way to say absolutely how long the occupancy period will be.
4. There is often a relationship between the length of the occupancy period and the experience level of the developer. The more experienced the developer, the shorter the occupancy period. Experienced developers who are familiar with process and who have diligent lawyers working behind the scenes for them know how to build and how to register a building as quickly as possible.
5. It is in the developer’s best interest to register the building as quickly as possible and to have the occupancy period as short as possible. This is because they don’t get their money from the banks until the building is registered and all the unit owners have their mortgages commence. 

I always appreciate your feedback. Leave a comment or send me a private message via my contact form.

Link to a recent Globe and Mail article on occupancy fees.

The numbers are in for November and it isn’t pretty.  TREB just released their sales figures for the month of November and unlike last month, we can now say that for the resale downtown condo market, prices have fallen.  Let’s just get right into the numbers.

Compared to November 2007:

• In C01 (downtown west), condo sales are down 61%, average prices are down 11%, and inventory is up 90%. The number of sales as a percentage of active listings was 13% versus 64% last year.
• In C08 (downtown east), condo sales are down 51%, average prices are down 9%, and inventory is up a staggering 164%. The number of sales as a percentage of active listings was 15% versus 83% last year.

Compared to October 2008 (last month):

• In C01, condo inventory has increased by 6% and sales decreased by 40%
• In C08, condo inventory has increased by 15% and sales decreased by 41%

Upon first glance it looks like this must be the crash taking place that the pundits have long been predicting. Possibly, but let me point out a couple interesting facts:

• In C01, average prices of condos were down 11%, but the median price was down only 3%.
• Similarly, in C08, average prices of condos were down 9%, but the median price was down only 3%.

What am I getting at here? If you believe that the median price is a more accurate measure of the volatility in the market, then things aren’t as bad as they seem. Or another way to look at it is the numbers from 2007 were skewed because of the disproportionately high number of sales of high-end properties (people rushing in to buy before the Toronto Land Transfer tax kicked in). John Pasalis of Move Smartly is a proponent of this theory and has written a couple posts about this here and here. 

So what do the numbers from this month mean?

1. For Buyers - December could be good month for you. With about 1200 available condos to choose from in the downtown core (versus about 600 last year), and very few buyers to compete with, the time is now to put in that low-ball offer you could only dream about just 3 months ago. 
2. For Sellers - This would be a good time to take your property off the market if you don’t absolutely need to sell. Consider trying your luck again in the new year, but be warned, there may be hundreds of others who will use the same strategy.
3. For Investors - The resale market is suddenly looking more promising. “Positive Cash Flow” is no longer an impossible dream. Buying in a market like this is not for the faint of heart, but go out and find the desperate corners of the market and you may be rewarded.

Nov 2008 Downtown Condo Stats

If you haven’t already, check out my post from last month with a similar look at the downtown condo numbers entitled: “Is the Toronto Condo Market Crashing?“

Bauhaus Condos at King and Sherbourne. VIP sales are happening now. Suites starting from the low $200s. Modern architectural tower integrated into historical 19th century building in the heart of the Design District / Furniture District, and steps to the St Lawrence Market.  Contact me for your chance to purchase a suite before the launch to the general public.

For more information on Bauhaus, including floor plans, current availability, and pricing, please contact me.

Thinking of buying a new condo directly from a builder? Read this first.

From the developer’s marketing materials:

Building Features

18 storey luxury building with 147 suites rising out of a stunning re-constructed 3 storey Heritage building, Architectural design by award winning Prish Jain of TACT Design Inc, Interior design by award winning Mike Niven Interior Design Inc, Dramatic floor to ceiling double glazed windows, Automated vehicle lift to parking garage, Private rooftop patios for Penthouse suites*, Gas line connection for BBQ optional on select suites***, Fully secured access with Executive Concierge, Parking and storage lockers available* ***, Visitor bicycle parking, All new construction protected under the Tarion Warranty Corporation, Private residents lounge with fully integrated fireplace, Designer decorated hotel-style guest suite, Executive style meeting room

Suite Features

9’ ceilings in principal rooms (8’ ceilings on floors 5,6,8 and 9)*, Smooth finish white painted ceilings and columns, Solid core entry door with chrome hardware and security viewer, Elegant pre-engineered hardwood flooring throughout suite**, Custom designed contemporary style flat slab or glass doors or sliders*, Contemporary profile painted wood baseboards, Choice of designer series paint**, Ceiling light outlet in dining room

Green Building Features

Suites individually metered for energy consumption, LEED® registered building, Multi-sorter recyclable waste system, Low maintenance Green Roof, Master on-off switch conveniently located near entry door in all suites, Motion controlled lights in all stairwells, Low VOC paints, Dual flush toilets, Low flow faucets and showerheads, Energy Star® washer and dryer, Fully integrated whisper quiet dishwasher with delay start green feature, Environmentally friendly flooring (carpet, hardwood, tile), High efficiency, low emission thermal double glazed windows, Auto share program located in the building, Visitor bicycle parking, Individual bicycle parking, Timer and photo cell on all exterior lighting, Compact florescent light bulbs in all suites and common areas, High efficiency hot water gas boiler system, Environmentally friendly high quality clay brick for exterior, Parking exhaust controlled by CO and NO monitors, Exceeds City of Toronto GREEN building standards, In suite heat pump units allowing for independent control of heating and/or cooling year-round.

Deposit Structure: 

• $2000 with offer, Balance of 5% in 30 days, 5% in 90 days, 5% in 180 days, 5% at occupancy

Parking:  $30,000 (select suites only) 

Lockers:  $3,500

Occupancy: December 2011

Maintenance Fees: $0.49 per square foot + Hydro

Taxes: Estimated at 1% of the purchase price

Coming soon to Adelaide and George St: Post House Condominium by Alterra Group. The name “Post House” comes from the sites’ proximity to Toronto’s first post office. This boutique building will rise 16 storeys above this historic and rapidly changing neighbourhood that is becoming one of the hottest areas to live in the downtown core with several other new or recent projects launching in the area including The Modern, Kormann House, VU, and Rezen just to name a few.

The neighbourhood has become very attractive with the furniture district along King Street East, The St Lawrence Market, and several great restaurants and pubs all within a 5 minute walk. Also nearby are the recently renovated buildings of George Brown College and it’s well-known culinary school.

For more information on Post House and your opportunity to purchase before the public at an upcoming VIP release, please contact me.

Thinking of buying a new condo directly from a builder? Read this first.

There may be bad news in the months to come, but this post is about some positive news from Canderel Stoneridge - the developer behind College Park 3: Aura. There is an application in with the City of Toronto for a lane closure on Gerrard Street at Yonge Street commencing in January and lasting for 57 months (nearly 5 years).

This is a good sign and presumably it means that construction will commence around January/February of ‘09. If it did, that would be less than 1 year since sales started on the project which is actually quite fast for a new development of this size and magnitude. 

My own opinion is that the financial crisis will delay far more projects than it actually cancels. Developers who have sold 50+% of their projects will be loathe to simply abandon them due to a temporary downturn in the availability of credit. I do expect occupancy dates for many pre-sold condos not yet under construction to shift forward significantly as the developers will all have to ‘wait in line’ to get money from the bank before they can start building.

Special thanks to the good folks at UrbanToronto.ca for the tip on this news about Aura. 

For more information on College Park Aura, including current availability and pricing, please contact me.

Downloads:

PDF of the Staff Report for the lane closure

PDF map showing the lane closure

The Verve By Tridel: It’s here and it’s beautiful.

Standing tall above Wellesley Street, between Jarvis and Sherbourne, The Verve is a big part of the ongoing transformation that is taking place on the downtown’s east side. If you haven’t been to Toronto in a while, or you haven’t been east of Yonge street in the past few years, I encourage you to come and see everything that is taking place here. As I’ve been saying for years: The East Side is the New West Side!

The Verve is a brand new building that has just registered. The occupancy period is now over and owners now officially own their units which means they are free to sell them at will. This is a great time for buyers to get a brand new condo without the usual 3-4 year wait, while also a great time for owners in the building to capitalize on the appreciation of their investment and sell.

If you are a buyer or renter interested in The Verve, please contact me for the latest list of all available units in the building.

If you are a unit owner at The Verve and you are thinking about selling or leasing our your unit, please contact me for a market evaluation and to discuss your options.

Links:

• Official Developer’s site

Attention Verve Owners:

I am now offering a FREE, no obligation service, called ‘Track Your Investment’.

Track your investment and see how much your unit has appreciated since you bought it by receiving new listings from The Verve by email as soon as they hit the market. Learn exactly how much your neighbour’s unit sold for!

This is a 100% free service with absolutely no obligation that I am offering to all unit owners at The Verve or anyone interested in learning more about current market values in the building. Contact me if interested.

Coming soon to the entertainment district from Cresford, Lofts 399.

This project is on the site of the project previously marketed as “Mode Lofts”. Cresford canceled this project last year after selling some of the units over a dispute with the city over density that apparently could not be resolved.

The project is being resurrected as Lofts 399 and floor plans are now up on Cresford’s official site. The name is derived from the address which will be 399 Adelaide in the heart of the Fashion/Entertainment districts.

Sales have not started to the broker community or anyone officially yet, but if you are interested in Lofts 399, please contact me because I have an exclusive opportunity to sell units to my clients at substantial discounts from what prices will be when they launch to the broker community later this winter.

Keep checking back here for updates on this project.

Links:

Cresford’s official website (includes floor plans).

Thinking of buying a new condo directly from a builder? Read this first.