The latest edition of the Austin Birch Report launches just in time, as many begin to assess if we have entered the new “normal”. As such, the team at Austin Birch, Toronto’s leading pre-construction advisors, looks over their collection of up-to-the-minute, real-time data to get a true snapshot of what people in the GTA can come to expect currently and in the upcoming months.
Like their previous volume, the latest report presents an unwavering gaze at the Toronto market, looking over the industry’s new opportunities and hard truths. In this article, we’ll be giving you an overview of the team’s important findings, but we highly encourage you to read the full publication by signing up for The Austin Birch Report at austinbirch.com
Of course, the first point on everyone’s mind is the declining number of sales in the pre-construction market. This has been a point of note for many in the industry who are only now feeling like things are finding their footing in the new climate. In the report, Austin Birch notes that there has been a staggering 79% decrease in new condo sales from the same period a year ago. They do, however, go on to point out that these sales are directly proportionate to the amount of product in the market, which has been reduced significantly.
Prices continue to remain high
New condominium presale launch activity has seen a significant drop from Q3 2021; nearly matching numbers from Q3 2019. Despite this fall, the total absorption of new projects has remained steady, and unsold inventory has declined 3% year-over-year.
The team goes on to say that although the sales numbers may be low, the sales prices have been exceptionally high. In fact, new condo prices are sitting at $1,427 PSF for these projects, though there is mention that projects priced below $1,400 PSF have accounted for most of the market absorption.
We also see that these prices are influencing the types of suites sold, as buyer interest is slowly shifting from 2-bedroom suites for work-from-home families to 3-bedroom suites that can accommodate multiple, individual renters – now coming together so as to afford these increasing prices.
Of note, Austin Birch also details that the Hamilton area represented an amazing 24% share of the total GTHA new condo sales in Q3-2022. Clearly, Hamilton’s $3.6 million government funding for infrastructure redevelopment has received a lot of attention, and many are already looking to the region as projects are priced 30% below the GTA average.
The report also tackles the issue of rescissions (dropped deals) within the market. Although some developments are still facing a higher-than-normal volume of rescissions (particularly from 1-bedroom units – making up 36.5% of all rescinded offers) many are seeing their rate of rescission has decreased considerably. This has been the case for all the projects that Austin Birch is representing. Since buyers don’t feel the need to make hasty decisions, developers are seeing most follow through on their purchases.
Developers are seeking expert sales teams
However, the report notes that buyers having the luxury of less pressure is highlighting the fact that new developments aren’t selling themselves. Now, more than ever, developers need expert, innovative and connected sales teams to help them convert leads to firm sales. The team at Austin Birch knows this all too well as they continually perform against the numbers, using real-time data to guide their strategies.
This is why Austin Birch has worked hard, regularly expanding their team to meet the growing needs of their expanding client and project list. With their broad experience, Austin Birch has assisted development teams from the west end to the east end, the city core and beyond, selling units that range from 407 sq.ft. to 4,348 sq.ft., $594,900 to the ultra-luxurious $10,499,900.
It’s no surprise some of the GTA’s most noteworthy developers continue to choose Austin Birch as their professional sales team, benefiting from their project strategy, sales strategy, quality control, market research, pricing strategy, consulting, global reach, launch and planning services.
Be sure to keep an eye out for their latest, upcoming projects: Trailside, Trailside 2.0, Trailside Collection Freeholds, The Saint, 123 Portland, Verge (East), Verge (West), AKRA Living and The Bedford.
Austin Birch's Mission
Austin Birch’s mission is to enable their clients to do what they do best: develop superb real estate. Austin Birch handles the rest, with an innovative hands-on approach that encompasses the entire sales and marketing process; helping developers release projects in truly unique ways. Austin Birch understands how crucial a custom strategy is to success and therefore has developed a highly attuned methodology that guides Toronto and GTA clients through every step of their unprecedented process. Discover how to unlock your project’s full potential with Austin Birch. Unthink the norm, Unthink Real Estate.
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