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GTA Condominium Market Update – September 2009

“The Good News continues – September was another Good Month”


ƒ Total New Condo Sales: 1,928 units (↑54.2% from last month; ↑95.1% year-over-year)
Colliers International ƒ No. of Projects: 306 projects (6.30 sales/project; 311 sites previous month)
One Queen Street East
Suite 2200 ƒ Average Index Price (GTA): $432/SF ($429/SF previous month; $427/SF in Sept-08)
Toronto, ON M5C 2Z2 ƒ New Openings (GTA): 3 projects (1,023 units; $438/SF)
Project Developer Location Sub-Market Units PSF 1
Phone 416.777.2200
Fax 416.777.2277 Tower at King West – Liberty Village Plazacorp S of King, E of Dufferin Downtown West 390 $441
530 St Clair Ave West (Phase 2) Goldman & Lash N of St. Clair, W of Bathurst York 155 $455
World Condos on Yonge (A1 & A2) Liberty N of Steeles, E of Yonge Markham 478 $423
Total / Average 1,023 $438
1
Original PSF at launch

ƒ Year-to-Date 2009: 8,620 units (↓31.1% year-over-year)


ƒ % Sold: 79.5% sold (Total inventory: 68,927 units/306 projects)
ƒ Unsold Inventory: 14,154 units (↓6.6% over last month; ↓26.3% year-over-year)
ƒ Top 5 Best Selling Projects:
Project Developer Location Sub-Market # Units # Sales 2 PSF 3
World Condos on Yonge A1 & A2 Liberty N of Steeles, E of Yonge Markham 478 334 $455
Tower at King W– Liberty Village Plazacorp S of King, E of Dufferin Downtown West 390 306 $438
Upside Down Condo Channington N of Dupont, W of Lansdowne Toronto West 297 120 $310
Hullmark Centre - North & South Tridel S of Sheppard, E of Yonge North Yonge Corridor 684 73 $594
South Beach Phase 2 Amexon N of Lakeshore, W of Pk Lawn Etobicoke Waterfront 313 49 $476
2 3
Sales were still in the 10-day rescission period at the time of the month-end report. Currently Available PSF

ƒ Market Summary (by municipality):


For further information, September September Year-to-date Year-to-date
Municipality
please contact: Sales Market Share Sales Market Share
Brampton 2 0% 28 0%
Toronto Investment Group Mississauga 80 4% 716 8%
Stephen T. C. Ho Etobicoke 154 8% 749 9%
Senior Vice President, Broker North York 241 13% 1,382 16%
416.643.3478 Scarborough 59 3% 249 3%
Stephen.Ho@colliers.com Toronto 911 47% 4,130 48%
Markham 365 19% 809 9%
Naomi W. M. Lau, MBA
Richmond Hill 19 1% 45 1%
Executive Assistant
Vaughan 50 3% 221 3%
416.643.3719
Other 47 2% 291 3%
Naomi.Lau@colliers.com
Total 1,928 100% 8,620 100%
Sources:
RealNet Canada Inc. The information contained herein has been obtained from sources deemed reliable. While every
reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is
The Lyon Report assumed for any inaccuracies. All properties are subject to change or withdrawal without notice. Colliers
Macaulay Nicolls (Ontario) Inc., Brokerage and certain of its subsidiaries are independently owned and
operated businesses and member firms of Colliers International Property Consultants, an affiliation of
Our Knowledge is your Property independent companies with over 240 offices throughout more than 50 countries worldwide.
GTA Condominium Market Update – September 2009
Market Trends
ƒ September new condominium sales rose by 54.2% from August to 1,928 units, mostly due to the strong sales in two successful
launches that accounted for one-third of the total new sales in September. From a quarterly perspective, the third quarter sales
increased more than 40% over the second quarter and more than 3,500 sales above the first quarter.
ƒ Year-to-date 2009 sales reached over 8,600 units; an impressive number few had expected at the beginning of the year.
ƒ Pricing continues to stabilize and remain affordable. End-pricing indicated a modest increase in September to $398,158 and
average index prices declined to $432/sf month-over-month.
ƒ The total number of sites decreased to 306 projects, representing the lowest level since late 2005. Sales momentum continues as
the monthly sales absorption rate for September jumped to 6.3 sales per project per month. The average absorption rates were
0.94 sales per project per month for Q1-09, and 3.17 sales per project per month for Q2-09.
ƒ Unsold inventory continues to decline and has reduced by more than 1,000 units to 14,154 units in September. The three new
openings have added a total of 1,023 units to the active inventory, the largest number of units launched in one month in 2009.
Given the recent improvements in both the new sales and resale markets, more projects are expected to launch in the coming
months.
ƒ The resale market continued its upward trend with an increase of 0.4% from August and 34.5% year over year. The median
resale price in September was $267,000, representing a considerable increase of 3.4% from $258,100 in August. Overall, the
GTA resale market experienced its fourth consecutive month above a 50% Sales-to-Listing ratio, with 3,727 listings and 2,002
units sold in September.
GTA Condominium Market Update – September 2009
Sampling of Recent High-Density Land Transactions:
The following are examples of recent high-density land transactions that recently occurred in the Greater Toronto Area:
Price/SF
Property (Location) Date Sold Sale Price Estimated Density SF
Buildable
17-23 Clairtrell Rd. & 391 Spring Garden Ave., Toronto 1
Nov 2009 $4,100,000 136,186 $30
(North of Sheppard, west of Bayview)
Sony Centre for the Performing Arts, Yonge St, Toronto 2
Oct 2009 $18,963,540 570,912 $38
(Southeast corner of Front & Yonge)
164 Avenue Road, Toronto
Sept 2009 $14,000,000 170,000 $82
(West side of Avenue, north of Davenport)
3
609 Avenue Road, Toronto
Sep 2009 $11,200,000 128,092 $87
(East side of Avenue, north of St. Clair W)
1 Bloor Street East, Toronto
Sep 2009 $53,000,000 700,000 $76
(SE corner of Yonge & Bloor)
22 Norton Ave. & 9 McKee Ave., Toronto 4
Aug 2009 $2,340,071 171,183 N/A
(South of Finch, East of Yonge)
5
558 & 560 Front Street West, Toronto $27
Aug 2009 $9,500,000 225,207
(North side of Front, East of Bathurst) Adjusted
7777 Weston Road, Vaughan
Aug 2009 $14,500,000 1,000,000 $15
(NE corner of Highway 7 & Weston)
630 Queen Street East, Toronto
Aug 2009 $1,300,000 55,822 $23
(North side of Queen, east of Don Valley Parkway)
1155 & 1171 Queen Street West, Toronto 6
Aug 2009 $8,627,690 350,000 N/A
(South side of Queen, east of Dufferin)
1 Vahalla Inn Road, Toronto
Jun 2009 $15,500,000 807,300 $19
(North of Bloor, east of Highway 427)
7
302 - 310 Queen Street West, Toronto
Jun 2009 $13,800,000 100,000 $138
(North side of Queen, east of Spadina)
621 King Street West (Travelodge Hotel), Toronto
Apr 2009 $21,875,000 300,000 $73
(South side of King, east of Bathurst)
Cumberland Street, Yonge Street, Bay St, Toronto
Apr 2009 $56,500,000 859,150 $66
(West side of Yonge, east side of Bay, north of Bloor W)
Bremner Boulevard, Toronto
Mar 2009 $29,000,000 797,978 $36
(South of Front, west of York)
8
One City Hall – Phase II, Toronto $38
Mar 2009 $18,750,000 330,519
(SW corner of Dundas & Bay) Adjusted
294 Adelaide Street West, Toronto
Feb 2009 $21,000,000 210,000 $100
(North side of Adelaide, east of Spadina)
299 Adelaide Street West, Toronto
Jan 2009 $8,690,000 142,000 $61
(South side of Adelaide, east of Spadina)
12 Church Street, Toronto
Jan 2009 $8,250,000 175,000 $47
(South of King, west of Lower Jarvis)

1
Distress - power of sale
2
Current site plan proposes a 57-storey, 585-unit condominium development with a total GFA of 504,067 SF and the Sony Centre will be
preserved. This transaction was negotiated more than three years ago.
3
The sale of 609 Avenue Road included a profit participation clause in addition to the consideration.
4
A joint venture, price shown only reflects partial interest of the deal
5
Adjusted price to account for a built underground parking garage for 160 cars
6
Purchase of partial interest of a project already under construction. The buyer indicates their assessed value of the land is in the range
of $30/sf
7
Sold by Stephen Ho. Mixed-use development site with premium retail component
8
Purchase price includes 118 pre-built underground parking stalls
GTA Condominium Market Update – September 2009
Stephen Ho’s Listings/Recent Activity Update:

7190 – 7200 Markham Road (Denison Square), Markham – ACTIVE


Retail plaza on a 3.86-acre site located at the southwest corner of Markham Road and Denison Street in the Town of Markham, just
north of Steeles Avenue. The site is currently improved with two single storey multi-tenant retail buildings; fully occupied and
anchored by Giant Tiger with an annualized NOI of approximately $645,000. Total rentable area is 37,345 square feet with a frontage
of 372 feet on Markham Road, and containing approximately 220 surface parking spaces. Asking: $8,800.000
5651 River Road, Niagara Falls – UNDER POWER OF SALE – ACTIVE
A 37,500 SF site overlooking the Rainbow Bridge in the heart of Niagara Falls. The site is improved with an existing building of
approximately 50,000 SF, a major tourist attraction known as Bird Kingdom. Located at the northwest corner of River Road and Hiram
Street, just east of the Rainbow Bridge, the property offers exceptional opportunities for an end-user or re-development into a
commercial / residential project. Asking: $7,750,000

Churchill & Horsham Land Assembly, Toronto – SOLD FIRM


Land assembly of nine residential dwellings at North York Centre area with a combined land area of approximately 55,500 square feet.
Price Range: $10,000,000

3665 Lawrence Avenue East (formerly Canadian Tire site), Toronto – SOLD CONDITIONAL
The 2.52-acre site is improved with a vacant single storey retail building, once a former Canadian Tire store with approximately 26,292
SF above-grade, plus basement, and 141 surface parking spaces. Excellent redevelopment potential – designated Mixed Use under
new Official Plan. Asking: $3,750,000
283 Spadina Avenue, Toronto – SOLD
A “trophy” commercial/retail building located at the corner of Dundas and Spadina in the heart of Toronto’s Chinatown, with TD Bank
as anchor tenant. It has 105 feet frontage on Spadina Avenue with 22,345 SF of rentable area. Tremendous upside potential. Offer
Submission Deadline: June 18, 2009. Asking: $6,500,000; sold for $6,710,000

302 - 310 Queen Street West, Toronto – SOLD


The premium 20,700 SF site is located at the corner of Queen St. W. and Soho Street, west of University Avenue. The site is improved
with a commercial parking lot with excellent redevelopment potential. Designated Mixed-use under Official Plan. Dozens of
international retailers are already on this strip. Market retail rent is over $100 / SF net. Asking: $14,000,000; sold for $13,800,000

Days Inn – 1677 Wilson Avenue, Toronto – SOLD


7-acre site with existing 199-room hotel located at the northeast quadrant of Highways 400 & 401. Designated as Mixed Use Areas
under the Official Plan, the site can be entirely or partially redeveloped. Asking: $13,000,000; sold for $12,000,000

409 & 417 Lakeshore Road West, Oakville – POWER OF SALE – SOLD
2.29-acre luxury residential development site close to waterfront and Appleby College; 13 partially serviced lots with a renovated
heritage house on one lot. Offer Submission Deadline: July 24, 2008. Under power of sale; sold for $3,999,000

54 & 60 Shepherd Road, Oakville – SOLD


The 58,700 SF site in downtown Oakville is designated “Major Redevelopment Area” in Kerr Village Revitalization Study; ideal for
high and/or medium density residential development; Close to QEW, Go Station, Oakville Town Centre, waterfront and Glen Abbey
Golf Course. Asking: $3,800,000; sold for $3,550,000

Bluewater Site, Wasaga Beach – POWER OF SALE – SOLD


117 partially serviced 50-ft waterfront lots in Wasaga Beach; over 2,400 feet shoreline on Georgian Bay; gross site area approximately
34 acres; net development area approximately 20 acres; close to downtown Collingwood. Under power of sale; sold for $11,000,000