GTA condo market remained strong in third quarter says Urbanation

by Steve Randall on 05 Nov 2019

The market for condominiums in the Greater Toronto Area showed continued momentum in the third quarter of 2019.

Figures from Urbanation show that Q3 2019 condo apartment sales stabilized at 4,703 units. That’s 1% higher than a year earlier and follows a strong second quarter to make a year-to-date increase of 21% from the same period of 2018 with 16,873 units.

New launch absorption remained consistent with the previous quarter with 63% of pre-sale units launched in the quarter having sold. Unsold inventory was 13% below the 10-year average at 12,822 units.

Prices were pushed higher by lower inventory; the index value for available units rose 6% year-over-year in Q3 to $1,036 psf. Price appreciation for new condos converged closer to the rate of increase for resale prices at 4% in Q3, supported by 12% growth in resale activity.

There was a 48% drop in the number of new units launched for pre-sale (2,556) in the third quarter. That saw the absorption rate of existing inventory in previously launched projects reaching 21%, the highest level since the market peak in early 2017.

On an absolute basis, the 3,101 units sold out of existing inventory in the third quarter represented 73% year-over-year growth in volume and came within 575 sales of the record set three years ago. 

2019 among best on record
Urbanation expects the final quarter of 2019 to maintain momentum with strong existing sales combining with new launches which have increased in the past month.

The firm expects 2019 to rank as the third or fourth highest year on record for new GTA condo sales.

Post a Comment

Most Trending News

Here’s how much monthly rental profit the average GTA condo earns
News

Sixty-three percent of investors in the GTA were cash flow neutral or positive last year, up from 56% in 2017. Investors who purchased presale condo units saw better cash flow than landlords who bought resale units.

Read More
Toronto suburb sets sales record
News

The total value of home sales nearly hit $1.5 billion last month - a 130.4% increase over March 2020, and the largest amount ever recorded for any month.

Read More
‘Boxy’ condos optimize space for end users, investors
News

Condo layout design is one of Condoville Realty Inc.'s specialties. A functional design is always better than a bigger design, especially when it comes to millennials looking for efficiency.

Read More