381 
Real estate research and analytics firm RealNet is reporting a new record in investment in commercial real estate in its second quarter report on GTA real estate, which was released today.
A total of $4.9 billion was invested in GTA commercial real estate during Q2 this year, with 500 investments worth more than $1 million each making up the total investment figure. The record results for Q2 eclipsed the previous record of $3.9 billion which was set in Q4 of 2006.
Second quarter results are up 75% compared to the first quarter this year, and are up 74% compared to this period last year. The growth was largely fuelled by record investment in the office and industrial sectors, accompanied by strong investment in the retail sector.
General Electric and Primaris sold about $1.6 billion worth of real estate assets in the GTA during Q2 this year, with those sales accounting for almost a third of total commercial real estate investment in the GTA.
The apartment and residential land sectors both posted declines, however, in terms of dollar volume of property transactions in the second quarter of this year, according to the report. The apartment land sector experienced a decline of 41%, while the residential land sector as a whole saw a decline of 35%.
"The record investment in the GTA commercial real estate market this quarter was the result a few large transactions that were originated late in 2012," said George Carras, President of RealNet Canada Inc. "The results demonstrate a shift in capital flows toward yield driven investments and away from the once dominant land sector investments."
New home sales in the first half of 2013 amounted to the second-lowest in a decade and 34 per cent below long-term average. High-rise sales in the first half of 2013 were the second-lowest on record and 19 per cent below the long-term average.
BILD, an association representing the land development, home building and professional renovation industry in the GTA weighed in on the report today. "Both the industry and the consumer are currently challenged by a considerable reduction of affordability and choice in the market," explained BILD President and CEO Bryan Tuckey. "This has severely reduced new home sales, particularly in the low-rise market which is experiencing record-high pricing."
The RealNet New Home Price Index showed a 6 per cent increase in the low-rise sector over June 2012, while high-rise pricing remained relatively unchanged. The price gap currently stands at approximately $208,439.
A copy of the full report can be read by clicking here.
