TORONTO – Nov 01, 2021: Urbanation Inc., the leading source of information and analysis on the condominium market since 1981, released its Q3-2021 Condominium Market Survey results today.
New condominium apartment sales in the Greater Toronto Area totaled 7,773 units during the third quarter of 2021, increasing 22% year-over-year from the previous Q3 high in 2020 (6,386). 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. However, annual growth was stronger in the City of Toronto at 40%, totaling 3,635 sales. Year-to-date new GTA condo sales 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).
Across the GTA new condominium market, unsold inventory declined 11% year-over-year to 11,955 units — falling 16% below the 10-year average of 14,279 units. When measured relative 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 the City of Toronto, compared to only 3.2 months in the 905 region of the GTA.
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 and 905 region prices increased 17% from a year ago to $1,005 psf, which was the first time unsold average prices in the suburbs moved past the $1,000 psf threshold.
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).
“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
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.