Urbanation just released its Q3-2020 market update for the Greater Toronto Area and the data is very encouraging for the new condo market. Here are some of the highlights:
There were 6,730 new condominium unit sales in Q3. This represents a 30% year-over-year increase.
More of this growth happened in the suburbs (905) with 3,834 units sales vs. 2,536 unit sales in the City of Toronto (416).
Of the 6,694 units that launched for sale in Q3, about 3/4 of them sold. This is the highest absorption rate since Q4-2017.
The average selling price for a new condo launched in Q3 was $1,044 psf (GTA average). This is up 3.5% compared to last year.
New launches in the suburbs sold for an average of $915 psf. New launches in the City of Toronto sold for an average of $1,275 psf.
I reckon that many of the people purchasing right now are looking through and to the other side of this current macro environment. They recognize that things will get better and that the Toronto region will continue to thrive. That's certainly how I'm thinking about it.
For the full Urbanation news release, click here.
Photo by Warren Wong on Unsplash
Urbanation released its Q2-2020 condo market survey results earlier this week. This data represents the first full quarter of sales to be entirely impacted by COVID-19. Not surprisingly, sales activity was way down. But pricing and construction starts actually increased. Here are some of the highlights:
New condo apartment sales totaled 1,385 units across the Greater Toronto Area. This represents an 85% year-over-year decline and the lowest sales activity since Q1-2009. Only six projects launched during this quarter.
The latest condo market data from Urbanation is encouraging. As I reported last month, April was a very slow month, which isn't surprising given that it was the first full month of lockdown. Residential resales across the Greater Toronto Area were down 67% year-over-year.
In May, we have seen resale condominium sales increase by almost 60% compared to April, though they are still down by a wide margin compared to last year. The average sale price also increased by 7.9% compared to April and by 3.4% compared to last year. This puts resale condominium prices in line with what we were seeing in Q4-2019.
The rental condo market (that is, condos being rented out via MLS) also showed signs of stabilizing. Leases increased by 75% compared to April, outpacing the number of new listings (66%). Rental rates remained more or less flat (0.3%) compared to April, but they are down by about 5% compared to their Q3-2019 high.
On the new construction side, we have only really seen a handful of new launches/releases. Units are selling, but it still feels a bit early, at least for me, to really determine where we're at in terms of pricing and velocity. Nevertheless, I suspect that we will see a significantly stronger fall market come September.
Urbanation just released its Q3-2020 market update for the Greater Toronto Area and the data is very encouraging for the new condo market. Here are some of the highlights:
There were 6,730 new condominium unit sales in Q3. This represents a 30% year-over-year increase.
More of this growth happened in the suburbs (905) with 3,834 units sales vs. 2,536 unit sales in the City of Toronto (416).
Of the 6,694 units that launched for sale in Q3, about 3/4 of them sold. This is the highest absorption rate since Q4-2017.
The average selling price for a new condo launched in Q3 was $1,044 psf (GTA average). This is up 3.5% compared to last year.
New launches in the suburbs sold for an average of $915 psf. New launches in the City of Toronto sold for an average of $1,275 psf.
I reckon that many of the people purchasing right now are looking through and to the other side of this current macro environment. They recognize that things will get better and that the Toronto region will continue to thrive. That's certainly how I'm thinking about it.
For the full Urbanation news release, click here.
Photo by Warren Wong on Unsplash
Urbanation released its Q2-2020 condo market survey results earlier this week. This data represents the first full quarter of sales to be entirely impacted by COVID-19. Not surprisingly, sales activity was way down. But pricing and construction starts actually increased. Here are some of the highlights:
New condo apartment sales totaled 1,385 units across the Greater Toronto Area. This represents an 85% year-over-year decline and the lowest sales activity since Q1-2009. Only six projects launched during this quarter.
The latest condo market data from Urbanation is encouraging. As I reported last month, April was a very slow month, which isn't surprising given that it was the first full month of lockdown. Residential resales across the Greater Toronto Area were down 67% year-over-year.
In May, we have seen resale condominium sales increase by almost 60% compared to April, though they are still down by a wide margin compared to last year. The average sale price also increased by 7.9% compared to April and by 3.4% compared to last year. This puts resale condominium prices in line with what we were seeing in Q4-2019.
The rental condo market (that is, condos being rented out via MLS) also showed signs of stabilizing. Leases increased by 75% compared to April, outpacing the number of new listings (66%). Rental rates remained more or less flat (0.3%) compared to April, but they are down by about 5% compared to their Q3-2019 high.
On the new construction side, we have only really seen a handful of new launches/releases. Units are selling, but it still feels a bit early, at least for me, to really determine where we're at in terms of pricing and velocity. Nevertheless, I suspect that we will see a significantly stronger fall market come September.
Most of the projects that did launch were outside of the core of Toronto. So that skewed pricing downward. In the first quarter of 2020, the average selling price for new launches was $1,159 psf. In Q2, this number was $889 psf -- again, reflecting a shift in geography.
But if you control for geography and compare year-over-year launch prices within the same submarkets, prices did in fact increase in Q2 compared to last year. At the same time, the average price for unsold units in Q2 increased by about 9% year-over-year to a record high of $1,087 psf. Unsold inventory also declined by about 19% from last year.
On the construction front, a total of 7,388 units started construction in Q2. This is a 45% increase from Q2-2019. A lot of this growth is coming from the suburbs, where presumably there are fewer supply constraints.
Given the resiliency that the market has been showing, Urbanation expects to see an increase in new project launches in Q3.
Chart: Urbanation
Most of the projects that did launch were outside of the core of Toronto. So that skewed pricing downward. In the first quarter of 2020, the average selling price for new launches was $1,159 psf. In Q2, this number was $889 psf -- again, reflecting a shift in geography.
But if you control for geography and compare year-over-year launch prices within the same submarkets, prices did in fact increase in Q2 compared to last year. At the same time, the average price for unsold units in Q2 increased by about 9% year-over-year to a record high of $1,087 psf. Unsold inventory also declined by about 19% from last year.
On the construction front, a total of 7,388 units started construction in Q2. This is a 45% increase from Q2-2019. A lot of this growth is coming from the suburbs, where presumably there are fewer supply constraints.
Given the resiliency that the market has been showing, Urbanation expects to see an increase in new project launches in Q3.
Chart: Urbanation
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