TORONTO – October 29, 2020: Urbanation Inc., the leading source of information and analysis on the condominium market since 1981, released its Q3-2020 Condominium Market Survey results today.
The total number of new condominium apartment sales in the GTA increased 30% year-over-year in Q3-2020 to 6,370 units, reaching a record high for third quarter activity. However, after sales in the second quarter declined to a 10-year low, total year-to-date sales were down 22% annually to 13,454 units, 13% below the 10-year average (15,451 units). Activity in Q3 was concentrated in the 905 Region, where sales grew 106% from a year ago to 3,834 units, while City of Toronto sales declined 16% to 2,536 units.
A total of 6,694 new units were launched for pre-sale in Q3 — a record volume for third quarter launches and representing growth of 162% compared to the 2,556 units launched in Q3-2019. As the resale market was reporting a sharp recovery in sales during the summer, developers ushered in new projects, which were very well received in the market. A 74% share of new units launched in Q3 were sold by the end of the quarter, increasing from the 63% share of new launches sold in Q3-2019 and the highest absorption rate for new launches since Q4-2017.
The average selling price for new condos launched in the third quarter was $1,044 psf, up 3.5% compared to the average price for new launches sold in Q3-2019 ($1,009 psf). A 65% share of new launches in Q3-2020 were located in the 905 Region of the GTA, which sold on average for $915 psf, compared to an average of $1,275 psf for new launches sold in the City of Toronto.
The total number of unsold new condominiums in development in the GTA declined 4% year-over-year to 12,962 units, which was 11% below the 10-year average level of unsold supply (14,545 units). Unsold units available at the end of the quarter were asking an average price of $1,106 psf across the GTA, up 7% year-over-year. Within the 905 Region, the annual price increase for unsold new condos was 15%, compared to 6% annual growth for the City of Toronto.
A total of 6,816 new condominium apartments reached completion in the GTA in Q3-2020, bringing total year-to-date completions to 17,596 units — 47% higher than a year ago (11,952). Despite the surge in completions, the number of condos under construction in the GTA remained near a record high at 78,156 units in Q3-2010. With an additional 5,411 units scheduled for completion in Q4, year-end 2020 completions are expected to total 23,007 units, a record high. Completions are projected to remain elevated with 22,434 new condos scheduled for completion in 2021, more than 70% of which are located in the City of Toronto.
“The third quarter showed impressive demand for new condominiums in the GTA amid the pandemic, with the suburban markets leading the way. This regional shift in activity is expected to continue as buyers gravitate to less expensive markets while the downtown area faces supply challenges in the near term.”
--Shaun Hildebrand, President of Urbanation