The latest survey from Urbanation reports that new condo apartment sales in the Greater Toronto Area increased 22 per cent from Q3-2020 to Q3-2021, from 6,386 units to a total of 7,773 units.
“Presale condominium activity reached new highs during the summer as developers continued rolling out a large number of new launches to meet soaring demand,” said Shaun Hildebrand, president of Urbanation. “With inventories declining further in Q3, this momentum is likely to sustain in the coming months, although high prices and greater prospects for interest rate increases may eventually start to weigh on demand.”
For the fourth time in the past five quarters, the 905 region of the GTA represented more than half of sales at 4,138 units, up nine per cent annually. Annual growth was stronger in Toronto at 40 per cent, totaling 3,635 sales.
So far in 2021, GTA condo sales have reached 22,107 units, which is 63 per cent higher than during the same period in 2020 (13,589) and the second highest level on record behind 2017 (23,919).
Unsold inventory dropped 11 per cent from a year ago to 11,955 units. This is 16 per cent below the 10-year average of 14,279 units. Compared to the latest 12-month average sales, unsold inventory in Q3-2021 was equal to 5.4 months of supply, the lowest level since Q1-2018 and substantially below a balanced level of 10 months. Inventory was equal to 7.6 months in Toronto, compared to only 3.2 months in the 905 region of the GTA.
Demand is strengthening and supply is falling. Prices for remaining new condominiums on the market in the GTA rose 10 per cent year-over-year to a record high $1,231 per square foot. Toronto prices were up seven per cent annually to $1,328 per square foot and 905 region prices increased 17 per cent from a year ago to $1,005 per square foot—the first time unsold average prices in the suburbs moved past the $1,000 per square foot threshold.
Outside of the former City of Toronto, which recorded 2,003 sales, the top GTA municipal markets for Q3 new condo sales are Mississauga (1,982), North York (804), Vaughan (596), Scarborough (446), and Oakville (375).
Photo by Kindel Media