The new condo market in the Greater Toronto Area has not only fully recovered from a pandemic slump, but reached record sales in the second quarter of 2021.
A new report from Urbanation found sales totaled 9,001 units, which is 5.5 times higher than sales during Q2-2020 (1,637 units) and nearly match the level in Q2-2019 (9,075), making it third highest quarterly total on record.
“The 905 continued to be a driving force as developers and buyers have shifted to more affordable locations of the region,” said Shaun Hildebrand, president of Urbanation. “With inventory approaching a three-year low, expect further upward pressure on new condo prices in the near-term.”
The 905 region of the GTA led new condo market activity with a 58 per cent share of sales in Q2-2021. A total of 8,490 new condo units were launched for presale during the second quarter, which achieved a record high absorption rate of 81 per cent.
The new units brought to market in Q2 were priced at an average of $728,160, or $1,110 per square foot (psf) based on an average unit size of 656 square foot. New condos launched in the City of Toronto were priced at an average of $834,504 ($1,276 psf) and units launched in the 905 region of the GTA were priced at an average of $661,537 ($1,007 psf).
Across the GTA, unsold inventory declined 10 per cent year-over-year to 11,716 units — an 11-quarter low and 23 per cent below the 10-year average (15,179 units). Average prices for unsold units available at the end of Q2 in the GTA rose 9 per cent from a year ago to a record high $1,196 psf.
Under construction in the GTA
The number of new condominiums under construction increased 11 per cent year-over-year to a record high of 86,346 units.
There was an additional 22,857 units in active projects in the pre-construction stage. An estimated 3,271 units were completed in the second quarter and 10,938 units were scheduled to reach completion during the second half of the year. This brings the total for 2021 completions to 18,157 units and represents a 19 per cent decline from the record high 22,473 units that were completed in 2020.
In the resale market, the 7,790 units sold are a Q2 record, with annual growth of 148 per cent when compared to Q2-2020. The ratio of units sold to total listings during Q2 reached 73 per cent, up from 45 per cent and well above the 10-year average of 57 per cent.
Average resale condo prices grew 9 per cent year-over-year to $860 psf, reaching above $700,000 for the first time ($707,000). Annual resale price growth was strongest in the 905 region of the GTA at 14 per cent ($708 psf; $628,000), compared to 8 per cent annual growth for resale prices in the City of Toronto ($930 psf; $740,000).
Average condo maintenance fees rose 6 per cent year-over-year to $0.75 psf, or $617 per month based on an average resale unit size of 822 square foot in Q2-2021.
Photo by Roberto Nickson