Although the Canadian economy faltered last year, low and high density residential investments reached $1.7 billion, indicating that the GTA is viewed with “strong industry confidence.”
“Altus Group’s review of the GTA’s commercial and residential real estate markets speaks to a mature market that continues to grow,” said Peter Norman, vice president and chief economist, Atlus Group, in a statement. “While the overall Canadian economy faces headwinds, the GTA economy is picking up steam and this is clearly reflected by the 2015 data on residential land sales, low and high rise new home sales and, of course, in the level of resulting construction.”
In particular, researchers found that the low-rise sector gained traction, with sales increasing 8% last year and resting at a 15% higher rate than the 10-year average. They believe that this segment is poised to continue that growth in 2016.
“It’s not surprising, given the continued degree of pent-up demand for low rise homes in the GTA, and the still- tight conditions on residential land, that the new home price index continued to climb in 2015,” Norman said. “A widening gap between the growth in low rise home prices and high rise home prices is further evidence of this trend.”
The high rise market, however, saw total sales fall by 2%. Still, with 20,625 high rise unit completions, the second highest in a decade, this segment demonstrated “sustained energy,” according to Norman.
Due these robust sales of low and high rise homes, land prices remained on pair with those of previous years.
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The GTA’s housing market not only remained resilient in 2015, but it posted record high residential land sales in the low and high density sectors, according to the 2015 Real Estate Review from Atlus Group Limited (“Atlus Group”).