Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

July 19, 2016 08:15 ET

Risks Mitigated in Condo Building in Toronto

TORONTO, ONTARIO--(Marketwired - July 19, 2016) - The majority of builders begin construction once they have achieved more than 70 per cent in sales, mitigating risks associated with speculative building, according to the Toronto Housing Market Insight Report released today by Canada Mortgage and Housing Corporation (CMHC).

Report Highlights

  • The majority of condominium apartment projects (79 per cent) have started construction after reaching a sales threshold of 70 per cent or more.
  • Projects that started construction significantly below the 70 per cent sales threshold are mainly smaller in size or a subsequent phase of a larger development.
  • Current unsold inventory is largely concentrated within downtown Toronto and Markham where condominium markets are more active.
  • Projects that currently have a high level of unsold inventory started construction prior to reaching a sales threshold of 70 per cent.

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QUOTES

"Condo building activity in Toronto seems to be well managed. In spite of this encouraging information, future inventory management remains critical."

Dana Senagama, Principal Market Analyst, GTA

Canada Mortgage and Housing Corporation

This release includes video and is also available at www.cmhc.ca

Additional data is available upon request.

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