The average rent for condo apartments leased through the MLS system increased by 8.3% in Q1-2017 from a year ago to $2.75 psf, moderating from the 11.6% annual growth recorded in Q4-2016. At an average of $1,993, monthly rent levels held steady from the record high reached during the previous quarter. Excluding the impact of new units, same sample annual rent growth was 5.5%, down from 6.8% in Q4-2016.
A total of 27,217 new condominium apartments were sold across the Greater Toronto Area in 2016, rising 34% over 2015 to a new high. Remarkably, sales totals topped the previous record set in 2011 on much fewer new pre-construction launches (18,466 in 2016 vs. 28,204 in 2011). Activity ended the year strong with 7,422 sales in Q4-2016, an 18% annual increase.
Rental development proposals continue to surge
In response to the increasing need for more clarity regarding the role of foreign purchasers in the Greater Toronto Area housing market, Urbanation expanded its survey of sales activity in new condominium apartment projects to include the share of units sold to non-resident buyers as well as domestic investors.
A total of 6,677 new condominium apartments were sold across the Greater Toronto Area in Q3-2016, soaring 73% year-over-year to reach the highest level of third quarter activity on record. Sales were 58% higher than the 10-year average for Q3 periods and 12% higher than the previous high set in Q3-2007. Total unsold inventory in development plunged by 33% from a year ago to 11,485 — the lowest level since the first quarter of 2007 and representing a record low 5.2 months of supply.
The number of condo apartments rented through the MLS system during Q3-2016 in the Greater Toronto Area declined by 9% from a record high last year to 7,651 units. Activity was held back by a 13% drop in listings as the number of units in new projects registered during the quarter declined by 30% year-over-year. The ratio of leases-to-listings hit a new high of 89% while available listings at the end of the quarter fell to a more than five-year low of 930 units.
Sales Jump 26% while Unsold Inventory Falls by 26%
Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its Q2-2016 market results today.
Condo Rental Leases Fall 10% from Last Year while Rents Rise 5%
Development Applications Surge by 5,600 Units in Q2
Urbanation Inc., the leading source of information and analysis on the Toronto condominium and rental market since 1981, released its second quarter 2016 rental results today.
We at Urbanation are always very excited to learn of new data releases relating to Toronto condo investors. While we have our own methodologies to approximate the share of new condos purchased by investors, and can track the flow of newly built units into the resale and rental markets upon completion, there is very little data available on the investors themselves -- who they are and their motivations.