April 16 (Bloomberg) -- Toronto condominium sales had their best March on record, more than doubling from a year ago as new projects stoked demand, according to RealNet Canada Inc.
Sales of new condos jumped to 2,496 units in Canada’s biggest city, driving first quarter sales 68 percent higher to 4,962 from a year ago, the Toronto-based real-estate research firm said today in a report.
Prices dipped to C$548 ($497) per square foot in March from a record high of C$559 in February while the average unit was 797 square feet, up from a record low of 784 in February.
There are more condos under construction in Toronto than any other North American city according to industry website Skyscraperpage.com, fueling a debate over whether the booming city can absorb supply.
More supply is coming according to the report. There were 4,614 high-rise units launched in the first quarter, up 66 percent from the same quarter in 2013.
Units are set to get pricier as developers pass on costs, according to George Carras, president of RealNet.
“The introduction of new costs into the development equation, particularly development charges, have to be reflected somewhere,” Carras said by phone. “It will likely put more pressure on project design and unit sizes. There’s a pressure for the size to shrink.”
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