GTA Property Sales Decline 30% to $4.7 Billion in Q3-18

 

TORONTO – October 26, 2018:  Urbanation Inc., the leading source of information and analysis on the Toronto real estate market since 1981, released its Q3-2018 commercial property sales results today.

Highlights of the release include:

  • The total value of property sales in the GTA fell 30% year-over-year to $4.7 billion, with the number of transactions in Q3 declining 23% to 320 sales (properties sold for $2 million+)
  • Declines were attributable to a 58% drop in office building sales to $879 million from a near quarterly record of $2.1 billion a year ago
  • As well, the total value of apartment development site sales fell 63% year-over-year to $315 million, and low density residential land declined 66% to $281 million
  • The biggest gainer by property type in Q3 was rental apartment buildings, which more than doubled in sale value to reach a high of $1.1 billion on 30 transactions
  • The largest recorded transaction in Q3 was the Wynn Group portfolio sale, containing a mix of rental apartments, retail and industrial properties for $950 million
  • Rental apartment buildings sold for an average of $271,000 per suite, a level that has held steady in recent quarters
  • Cap rates for rental building sales averaged 3.13% in Q3, ranging between 3.25% and 4.09% among the five largest transactions
  • The highest valued apartment site in Q3 that included a development application was the sale of 767-773 Yonge Street for $28 million ($191 psf of proposed GFA)
  • The average sale price of low density residential land declined from its peak of $838K per acre in Q2-18 to $683K per acre in Q3, which was up 42% from a year ago. Commercial land traded at $493K per acre
  • The average sale price for office buildings in Q3 was $285 psf, while industrial buildings averaged $144 psf and retail buildings averaged $278 psf
  • House lots reached their highest quarterly sale value of the year at $189 million, with an average price per lot of $257K

 

Contact: Shaun Hildebrand, President

shaun@urbanation.ca

416 922 2200 ext. 243

 

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