Ontario’s temporary Harmonized Sales Tax (HST) rebate has defrosted parts of the new housing market but Toronto condos are still on ice.

For 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.

“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.

• This condo correction could be one of the longest on record
• Canada’s condo supply is about to fall off a cliff

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.

• Email: shcampbell@postmedia.com

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Public relations maven Roxy Jacenko failed to secure a much-publicised $10m-plus move. Picture: Jonathan Ng

Singapore-based PR maven Roxy Jacenko failed to secure her desired $10m-plus midweek auction sale of her former commercial headquarters in Paddington.

“The property passed in,” Colliers listing agent James Cowan confirmed.

It was offered the morning of the federal budget property tax overhaul, so now its price fate sits amid the tumult that will beset property markets for years to come.

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Roxy Jacenko’s former Paddington office.

“We have a motivated vendor emotionally and financially ready to sell the property,” Cowan told prospective buyers.

“Initial expectations were above $10m.

“They are now below this,” Cowan advised.

The founder of the Sweaty Betty PR firm paid $2.66m for the 7-13 Elizabeth St premises in 2014.

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Roxy Jacenko is currently calling Singapore home.

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The 290sq m corner site comes with a lease to Maclay Longhurst’s Sydney Sotheby’s International Realty until May 2027, currently returning $300,000+ GST per annum, with a CPI increase due this month.

“This is a short-term lease considered to be well below market parameters,” buyers were told.

It is possible commercial property might benefit from increased purchasing interest following the federal budget that seeks to quell investor interest in residential housing.

The new capital gains tax arrangements, especially through self managed super funds, will no doubt become the focus for estate agents, accountants and valuers, who will need to review the final legislative changes before giving wise advice to clients.

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7-13 Elizabeth Street, Paddington, NSW 2021. Picture: realcommerical.com.au

The boardroom. Picture: realcommerical.com.au

Meanwhile, Paddington retail premises on William St changed hands midweek at $2.65m when bought by Elefteria Antonelli’s Leff Investments. The new tenant is tipped as estate agency Whitefox.

Beatrice Tsu-Jones, and Layton Bonnici have secured the sale of their Gurner St corner shop premises. The 204sq m premises passed in last Saturday at $6.05m but sold later. The premises traded in 2023 for $4,875,000 when sold by the Sproats family. It came with Suzanne Green plans.

Price hopes on the property have been dropped below $10m. Picture: realcommerical.com.au

Seven years ago, the street outside Jacenko’s office had been the scene of an infamous “poo jogger incident”, which was big news at the time.

Roxy had departed for Singapore to join her hubby three years ago and she’s told the AFR “a move back to Australia isn’t on the cards”.

She’s also described her former office, currently leased to Sotheby’s until next May, as “without question, the most luxurious communications office in the business”.

+ Additional reporting James MacSmith

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