Toronto – in demand and on the rise
Largely considered the pinnacle of the condo boom we’re seeing these days, Toronto still does boast some good lowrise home options. Supply and pricing of those homes, however, is another matter.
That’s what happens when you combine a strong economy and rising population with limited new and resale home supply.
Indeed, the Toronto Regional Real Estate Board (TRREB) is forecasting at least 10-per-cent price growth in the GTA this year to $900,000, up from $819,319 in 2019. And on the new home side, 2020 began on a strong note, with 2,106 total new home sales in January, up 65 per cent from January 2019 and 14 per cent above the 10-year average, according to the Building Industry and Land Development Association (BILD). The benchmark price for new single-family homes was $1.09 million.
Booming economy
“Toronto’s booming economy has brought with it housing affordability challenges that will continue throughout the next decade,” says Frank Clayton, senior research fellow, Ryerson University’s Centre for Urban Research & Land Development.
“Both the provincial and municipal governments must support a massive increase in the supply of all types of housing and tenures as priority number one and quickly transform the land use planning system to make this happen.”
Long considered one of the most multicultural cities in the world, Toronto boasts a collection of distinct communities, including East York, North York, Scarborough and Etobicoke.
Some of these areas, in fact, now represent areas of growth for new lowrise housing, given that larger master-planned communities of single-detached homes are fewer and farther between. Much of the focus now is on the socalled missing middle, those smaller developments such as townhomes that represent a real opportunity for new ground-oriented homes in the city.
Culture and entertainment
Find a way to buy and live in Toronto, however, and you likely will love it.
Toronto offers a vast array of culture and entertainment options, from the National Ballet of Canada, Toronto Symphony Orchestra, to the Art Gallery of Ontario, Royal Ontario Museum and more.
For the sporting sort, Toronto has a handful of pro sports teams – the Toronto Maple Leafs, Toronto Raptors, Toronto Blue Jays, Toronto FC and Toronto Argonauts – and is home to the Hockey Hall of Fame.
The Toronto International Film Festival (TIFF) is an annual event celebrating the film industry and attracts many movie stars and a-list players. And the Toronto Caribbean Carnival, formerly known as Caribana, attracts more than one million people every summer.
Other points of interest include the Toronto Zoo, the Ontario Science Centre, Harbourfront, Fort York, the Distillery District, Ripley’s Aquarium, the CN Tower and the Canadian National Exhibition.
And of course, as a large metropolitan city, great shopping areas include the St. Lawrence Market, Kensington Market, the Toronto Eaton Centre, Sherway Gardens and Yorkdale Mall.
Though a subject of some debate due to the challenges with keeping up with all the growth, transit and highway infrastructure is undergoing major expansion all over the city. The TTC moves almost two million people throughout the city every day on subway, buses, streetcars and LRT lines, while GO Transit links Toronto with the surrounding regions of the GTA. Highways include the 400 series (401, 403, 404, 407 and 427), the Don Valley Parkway and the Queen Elizabeth Highway.
Location, location, location
This provincial capital of Ontario and the most populated city in Canada is located on the shores of Lake Ontario; Population 2,954,024
Key landmarks
- CN Tower
- High Park
- Ontario Science Centre
- Ripley’s Aquarium
- Toronto Eaton Centre
Select housing developments
Origins of Don Mills by Mattamy Homes
Terraces at Eglinton by Nascent Developments
The Belmont Residences by Caliber Homes
The New Lawrence Heights by Context Dev. Inc.
The New Lawrence Heights by Metropia
Twelve on the Ravine by Geranium
It's early days yet, but some experts suggest these very homebuyers might become a fast-growing demographic in a post-pandemic market.
And Georgian, offering "more than a floorplan, but an opportunity for a more balanced way of life," seems well positioned to deliver.
Mike Parker, vice-president of sales and marketing, discusses the Georgian approach – pre- and post-COVID-19.
When we last spoke, for our Special Report: Outlook 2020 in our January issue, you were quite bullish on the outlook for 2020. How were things unfolding before COVID-19… pretty much as you expected?
Yes, we had a positive start to the year. All of our sites were essentially in the same position, with final lots and suites in current phases well positioned to be sold out by the end of the first quarter. We continue to have strong interest in our communities with people connecting with us daily, collecting information and asking questions, however, people are more cautious to move forward with a purchase at this time. Due to demand, we opened our final phase at Mountain House in Blue Mountain just prior to the COVID-19 pandemic. Obviously, this altered our outcome, however, a good percentage of our purchasers continued with their purchase.
The pandemic has obviously changed everything, at least for the time being. How is Georgian Communities operating during this time – for example, accepting sales centre visits by appointment only, giving virtual tours…
Like all businesses, we've had to adapt to new health and safety measures to help ensure the well-being of our staff, and of course the public. Our production team continues to construct our homes and condos, albeit under stricter working protocols. We've increased communication with our onsite team to ensure they and our trade partners have the necessary support to conduct their activities safely. Currently, our sales centres and model homes are closed, but we have kept our regular sales centre hours the same with our team working remotely. We previously introduced virtual tours of our model homes and we connect with people through phone, video conference and, of course, email. We've had a 30-per-cent increase in website registrations with people spending more time online. This is positive, as it keeps our team busy with follow-up and one-on-one engagement.
And how is all that going?
Our immediate priority is to maintain and promote personal engagement with people. In many aspects, we are conducting our sales operation in the same manner we always have. It's not unusual for the majority of our initial communication to be done remotely. However, what's obviously missing, and what I feel will always be important, is the tangible aspects of visiting us. Walking through our model homes, taking in the views, enjoying the local restaurants and shops to get a sense of the area, and of course the in-person interaction with our team are all important components of our sales process. Technology is a tool, and one we absolutely could not operate business without. However, for us, and the nature-rich based communities we have, we want people to be able to experience what we have in person. We look forward to this returning. What we are offering is so much more than a floorplan. It's an opportunity for a new, more balanced way of life.
Given that your community locations are outside the GTA, how conducive is that to success when the market returns to "normal"?
We are very optimistic that we will see an increase in demand for all of our communities. Windfall and Mountain House in Blue Mountain offer private enclaves away from urban congestion, close to all daily necessities, and set in one of the most beautiful four-season recreational playgrounds.
Similarly, Braestone offers large estate lots set in the picturesque Horseshoe Valley region, another four-season playground. Many of our residents have the ability to work from home, and we suspect this trend will continue as companies have been forced to provide and embrace remote working solutions. We are extremely confident that we have the locations, lifestyle and homes that people desire and, when individual consumer confidence returns, we will remain well positioned.
What is the status of Windfall? How is that project coming along?
Windfall continues to be one of the most sought-after communities in Blue Mountain. Located next to the mountain and within minutes of the slope-side village, it continues to exceed our expectations. To date, we have delivered more than 250 homes and, assuming we will be able to continue building, our construction pipeline is full through the second quarter of 2021. We are not delaying the launch of our next phase, which is scheduled for May/June 2020. You can literally walk to the chair lift from this part of our community and people are anxiously awaiting the opportunity to live here. We have, of course, been in touch with our potential future homeowners to gauge their interest, given the current circumstance, and most plan on moving ahead when we do, in fact, release.
And Braestone?
Braestone is a country estate community located in the Horseshoe Valley region with convenient access to neighbouring Barrie and Orillia. It offers large estate lots with beautiful natural amenities such as berry and pumpkin patches, a maple syrup producing sugar shack, kilometres of trails and unbelievable value compared to the GTA. Residents truly enjoy a life altering style of living, and we believe this community will increase in demand as more and more people look for options further away from the city. Similar to Windfall, we are not delaying the release of our next phase. In fact, we've taken advanced reservations on 40 per cent of the upcoming release. We are extremely excited about the escalated increase in interest for Braestone.
How will you welcome buyers back, when things return to normal and the market "reopens"? For example, will you offer any incentives, price discounts or free upgrades…?
We've always positioned our homes to offer value that exceeds their price and to be extremely competitive in the market. We have no plans to discount pricing, however, we will continue to offer decor incentives as we always have, as a means to help our customers obtain their priority upgrades.
Our sales philosophy is based on sharing, not selling. Our team simply shares what our communities have to offer, what lifestyle improvements our residents experience, and we provide information through a more holistic approach. Each community we build is designed to create positive interactions between neighbours – places for adventure, dreams, inspiration and coming together in shared experiences. We look forward to this being normal again.
What's next for Georgian? What other new opportunities are you considering bringing to market?
We are very excited about our future development in the village of Craighurst, which is currently in the planning stages. Located minutes from Hwy. 400 and just 15 kms from north Barrie, this small town community will be embedded in nature, yet minutes to city conveniences. Additionally, we continue to study opportunities within "our own backyard" in the Grey and Simcoe County regions.
