Last year, in the thick of the pandemic we saw a 22% increase year-over-year of new condominium sales in the GTA to 6,386 units, reaching a record high for third quarter activity. Did I mention that was in the middle of the global pandemic?! Investors remained confident about the Toronto new condo market and a year later the confidence and demand is stronger.
According to Urbanation’s new report, new pre-construction condo sales in the Greater Toronto Area totaled 7,773 units during the third quarter of 2021.
Year-to-date new condo sales in the GTA reached 22,107 units, 63% higher than during the same period in 2020 (13,589) and the second highest level on record behind 2017 (23,919).
Which region is leading in new pre-construction condo sales? 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 9% annually.
Outside of the former City of Toronto, which recorded 2,003 sales, the top GTA municipal markets for third quarter new condominium sales included Mississauga (1,982), North York (804), Vaughan (596), Scarborough (446), and Oakville (375).
What impact does this have on pricing? With demand strengthening and supply falling, prices for remaining new condominiums on the market in the GTA increased 10% year-over-year to a record high $1,231 PSF. City of Toronto prices were up 7% annually to $1,328 PSF (price per sq ft) and 905 region prices increased 17% from a year ago to $1,005 PSF.
“Presale condominium activity reached new highs during the summer as developers continued rolling out a large number of new launches to meet soaring demand. 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.” –Shaun Hildebrand, President of Urbanation
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