TORONTO – January 17, 2014
Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its Q4-2013 market results today.
A total of 4,299 new condominium apartments were sold in Q4-2013, up 12% from last year — the best quarterly result since Q2-2012. Total sales for 2013 came in at 13,797 units, representing a 22% decline from 2012. Percentage declines in 2013 were magnified due to the record sales volumes recorded in the first half of 2012. The five-year annual average of 19,090 sales remained above the longer-term 10-year average of 17,727 sales per year.
“The market displayed noticeable improvement in the final months of the year. The adjustments made by the industry throughout 2013 to make projects more competitive have begun to pay off. This momentum is expected to help usher in more new projects during the first half of 2014 and boost up sales” said Shaun Hildebrand, Urbanation’s Senior Vice President.
The average price for sold units in development grew by 1.3% annually in the fourth quarter to an average of $543 psf, the slowest pace of growth since 2005. Asking prices for unsold units declined by 0.9% year-over-year in Q4 to an average of $563 psf.
“While we saw a soft landing in the new condo market in 2013, condo resale and rental activity strengthened last year. This should help improve confidence for new condo buyers, which is believed to be the biggest factor impacting the market,” added Hildebrand.
Resale condominium apartment sales totaled 15,698 units in 2013, up 2.7% from 2012. Meanwhile, rental condominium apartment transactions grew by 28% to reach 19,628 units — a higher level than resale transactions for the second consecutive year. Condo resale prices increased by an average of 2% in 2013, ending the year at $418 psf. Condo rents grew by an average of 4.2% in 2013, reaching $2.37 psf in Q4-2013.