TORONTO – May 5, 2015: Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its Q1-2015 market results today.
A total of 4,432 new condominium apartments were sold across the Greater Toronto Area during the first quarter of 2015, representing a 10% year-over-year decline. Volumes were restrained by a 22% decrease in the number of new units brought to the market, led by a 58% annual drop in new product in the former City of Toronto.
Steady absorption of units in existing projects brought the level of unsold inventory in active development down by 10% from a year ago to a total of 17,488 units. Pre-construction unsold inventory fell by 16% to 8,781 units, while the total number of units under construction that are unsold declined by 9% to 7,059 units (out of 51,289). Over 21,000 condos were completed during the past 12 months, which pushed standing developer-held inventory in occupied buildings up by 49% to 1,648 units — still representing just 5% of the total newly built stock.
In the former City of Toronto, unsold inventory of new condos fell by 20% year-over-year as just five new projects came to market in the first quarter totaling 1,436 units, down 58% from the same time last year.
In total, 84% of the 106,056 units in actively marketed developments were sold at the end of the first quarter, representing a record high for total absorptions in the GTA new condo market.
“Underlying market conditions for new and resale condos have tightened considerably, which should quell concerns of over-building” said Shaun Hildebrand, Urbanation’s Senior Vice President. “Record levels of completions are being offset by a very limited turnover of units listed for resale and a reduced number of new condo project openings, supporting a steady level of price appreciation.”
The index for average selling prices for new condos grew by 2% year-over-year to $562 psf in the first quarter. Resale price growth accelerated to 5% to an average of $431 psf ($386,000 for an average unit size of 894 sf). Resale transactions and total listings grew at the same annual rate of 14%, with sales over the past 12 months reaching a near record high 18,307 units.
Condo rental apartment results recently reported by Urbanation showed a record amount of activity, with the number of units rented rising 11% to a total of 4,938 in the first quarter and 23,240 units over the past 12 months. Units listed for rent grew at twice the pace of leases in the first quarter, holding rent growth to 1% annually to an average of $2.37 psf, or $1,790 monthly.