TORONTO – Aug 03, 2021: Urbanation Inc., the leading source of information and analysis on the condominium market since 1981, released its Q2-2021 Condominium Market Survey results today.
New condominium apartment sales in the Greater Toronto Area totaled 9,001 units in the second quarter of 2021, which was 5.5 times higher than sales during Q2-2020 (1,637 units) and nearly matched the level in Q2-2019 (9,075), representing the third highest quarterly total on record. The 905 region of the GTA once again led new condominium market activity with a 58% share of sales in Q2-2021.
A total of 8,490 new condominium units were launched for presale during the second quarter, which achieved a record high absorption rate of 81%. 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 sf. New condominiums 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 new condominium market, unsold inventory declined 10% year-over-year to 11,716 units — an 11-quarter low and 23% below the 10-year average (15,179 units). Average prices for unsold units available at the end of Q2 in the GTA increased 9% from a year ago to a record high $1,196 psf.
The number of new condominiums under construction in the GTA increased 10% year-over-year to a record high of 86,149 units. There was an additional 22,857 units in active projects in the pre-construction stage. A total of 4,317 units reached completion in the second quarter and 10,741 units were scheduled to reach completion during the second half of the year, which would bring the total for 2021 completions to 19,006 units, representing a 15% decline from the record high 22,473 units that reached completion in 2020.
In the resale market, the 7,790 units sold in the second quarter represented a Q2 record and annual growth of 148% when compared to Q2-2020. The ratio of units sold to total listings during Q2 reached 73%, up from 45% in Q2-2020 and well above the 10-year average of 57%. Average resale condominium prices in the GTA grew 9% 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% ($708 psf; $628,000), compared to 8% annual growth for resale prices in the City of Toronto ($930 psf; $740,000). It was also found that average condo maintenance fees rose 6% year-over-year to $0.75 psf, or $617 per month based on an average resale unit size of 822 sf in Q2-2021.
“The second quarter showed that the GTA new condominium market not only fully recovered from COVID-19 but also returned to near record high sales volumes. The 905 continued to be a driving force as developers and buyers have shifted to more affordable locations of the region. With inventory approaching a three-year low, expect further upward pressure on new condo prices in the near-term. ”
--Shaun Hildebrand, President of Urbanation
ABOUT THE CONDOMINIUM MARKET SURVEY
Urbanation has been surveying the GTA condominium market each quarter since 1981 through established relationships with the region's developers, brokerages, and lenders. In addition, our team of experienced researchers conduct regular site visitations to compile the industry's most in-depth coverage on every new condominium project in development across the region.
Urbanation's Condominium Market Survey subscription provides access to our historical online database of new condominium developments in the GTA and Hamilton-Grimsby, including full project profiles and unit information, and market reporting metrics such as sales totals, absorption rates, inventory levels, average sold and unsold prices per sf, incentives, and more. Data is reported at the individual project level, with tools to generate regional, municipal, and submarket totals. Information on upcoming new condo project launches and future developments are tracked in our proposed database, which is also included as part of the Condo Market Survey subscription.
Urbanation is a real estate consulting firm that has been providing market research, in-depth market analysis and consulting services to the apartment industry since 1981. Urbanation uses a multi-disciplinary approach that combines empirical research techniques with first-hand observations and site visits. Urbanation offers subscription services and custom market studies covering the new construction condominium and purpose-built rental apartment markets in the Greater Toronto Area.