New condominium apartment sales in the GTA continued to outpace new single-family home sales in June, despite another increase in the benchmark price of condo apartments and a slight softening in the prices of single-family homes, according to the Building Industry and Land Development Association (BILD).
There were 2,500 new homes sold in the GTA in June, of which 2,079 were condominium apartments in low, medium and high-rise buildings, stacked townhouses or loft units, according to Altus Group, BILD’s official source for new home market intelligence. That figure is 61 per cent below the record set in June 2017, when 5,290 condos were sold, the highest number ever. However, June 2018’s sales were only 17 per cent below the 10-year average. The benchmark price of condominium apartments rose to $774,554, an increase of 23.5 per cent compared to June 2017.
June 2018 saw 421 sales of new single-family homes, including detached, linked and semi-detached houses and townhouses (not including stacked townhouses), a decline of 19 per cent year-over-year and 71 per cent below the 10-year average. The benchmark price of new single-family homes fell 9.4 per cent on an annual basis to $1,132,957.
“The relative strength of condo apartment sales is an indication of the state of the market,” said David Wilkes, BILD president and CEO, in a press release. “The cost of new homes in the GTA, both condos and single-family homes, is affected by government regulation and red tape that slows down the building of new supply, and by government fees, taxes and charges, which can account for almost a quarter of the cost of a new home.”
Since this June saw a number of new condominium apartment openings, remaining inventory for condos increased to 10,335 units, while the remaining inventory for single-family homes climbed slightly to 4,848 units. Remaining inventory includes units in pre-construction projects, in projects currently under construction, and in completed buildings.
“The industry and buyers continue to focus on the relatively more affordable condominium apartment sector,” added Patricia Arsenault, executive vice president of research consulting services at Altus Group. “Fourteen new condominium apartment projects were launched in the GTA last month, the second highest number for June yet recorded by Altus Group, and buyers snapped up almost half of the new units by month-end. In a typical June, closer to one-third of new units are sold by month-end.”