TORONTO – October 30, 2014: Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its Q3-2014 market results today.
A total of 4,753 new condominium apartments were sold across the Greater Toronto Area during Q3-2014, representing the third best summer for the market behind 2011 and 2007 and a 53% year-over-year increase from a 10-year low in 2013. Sales over the past 12 months ending in September have reached over 19,000 units in the GTA — a level not seen in two years.
Sales were boosted by a number of highly successful new project launches during the quarter, but more importantly by increased absorptions at pre-existing projects. As a result, the number of unsold units in the market across all stages of development (pre-construction, under construction and recently completed) fell by 11% during the quarter to 16,743 units.
The share of total active units in development (104,081 units) that have been pre-purchased increased to a record high of 84%.
The index for average selling prices reached $555 psf, up 3% year-over-year, which is consistent with the trend over the past two years. Pricing for unsold units grew at an annual pace of 2% to an average of $571 psf, which marked a change in course following flat to slightly negative growth rates in previous quarters.
“Sales this past summer reaffirm that the new condo market in Toronto is on track for one if its best years on record,” said Shaun Hildebrand, Urbanation’s Senior Vice President.
“There is still quite a bit of pent up demand that came out of the slowdown last year. Should market confidence continue to hold in spite of the recent turmoil in financial markets, this sales momentum will carry into the final months of 2014 and early 2015,” added Hildebrand.
GTA resale condo apartment sales grew by 15% year-over-year to 4,850 units in Q3-2014, picking up a bit of speed from the 14% and 12% rates of growth in the second and first quarters of the year, respectively. Meanwhile, listings were relatively flat, tightening the ratio of sales to total listings to a two-year high of 47%. Prices increased by 3% to an average of $426 psf.