Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeReal EstateHST rebate fails to thaw Toronto's frozen condo marketNumber of new homes sold last month tripled, but few of them were condos You can save this article by registering for free here. Or sign-in if you have an account.New condo sales in Toronto last month were 88 per cent below the historical norm. Photo by Peter J Thompson/National PostOntario’s temporary Harmonized Sales Tax (HST) rebate has defrosted parts of the new housing market but Toronto condos are still on ice.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorFor the first time in three years, single family home sales rose above historical norms in April. Condos, however, remained near record lows, according to data released by Building Industry and Land Development Association (BILD) and Altus group on Wednesday.Toronto recorded 1,100 new home sales last month, more than triple the number sold a year ago but still 55 per cent below the 10-year average. Low-rise accounted for 901 of those sales, 21 per cent above the long-term average, and condo apartment sales came in at 199 units, 88 per cent below the historical norm.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“There hasn’t been much response from buyers to this program,” Edward Jegg, research manager at Altus Group said of the rebate during a condo market webinar accompanying the release.Instead, Jegg explained that the strongest response to the rebate has been seen in lower-priced, ground-oriented housing types like stacked condos.“This rebate has flipped the script, and now it’s the low rise that’s actually leading the way,” Jegg said. “For the last 10 to 15 years, Toronto has been much more of a condo market than a single family market,” he said.According to BILD, the HST relief program and pent-up demand that accumulated during the housing market’s downturn have helped bring homebuyers back into the low-rise segment.The association also noted substantial affordability improvements before the rebate took effect.“Prices have been about 20 to 25 per cent down from the peak of 2022, and then on top of that, you would layer on another 13 per cent (HST savings),” said BILD’s chief operating officer Justin Sherwood.In March, Ontario Premier Doug Ford and Prime Minister Mark Carney announced that all homebuyers can now qualify for a one-year exemption from the HST on newly-constructed homes valued at $1 million or less, with partial rebates for higher-priced homes.Although the provincial aspect of the bill passed in the budget, the federal bill has only gone through its first reading — meaning full implementation of the HST rebate is still incomplete.BILD said, “greater clarity” on how to get the rebate is urgently needed to spur further activity.Still, within the first month of the incentive rollout, which started April 1 and runs until March 31, 2027, the condo market continued to overflow with inventory and weak investor demand.BILD recorded 13,331 units of unsold inventory in April, consisting of 4,757 units in pre-construction projects, 6,259 units in projects under construction and 2,315 units in completed buildings.The association also said that institutional investors have started to step in. Sherwood said 29 units near Toronto Metropolitan University were purchased as part of a larger bulk acquisition expected to eventually total 300 rental units.“Additional bulk purchases are expected to close in May and June,” he said. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.