The sale of high rise units in the GTA shifted to the 905 in the first quarter of 2012, with 46 percent being sold in the 905 municipalities. RealNet attributes these numbers to the growing gap in prices between low-rise homes and high-rise condo units and the increasing pace of high-rise launches in the region.
Between Q1 2011 and Q1 2012, the 905 saw a nearly 30 percent jump in high-rise development. BILD Acting President Joe Vaccaro explains this trend as partially due to government intensification policy around planned transit corridors, which applies to all municipalities in Ontario. As of March 31, RealNet's price index for a new low-rise home in the GTA stood at $576,567, more than 10 percent higher than a year ago, while the price index for a high rise unit stood at $421,839, a 5.6 percent drop from one year ago.
High-rise units continue to shrink, explains RealNet Canada's President George M. Carras — the index size of a new high-rise home in the GTA shrank by 30 square feet in Q1 2012 to 790 square feet, which accounts for the drop in price for these units. The full report can be read here.