New GTA condo prices up 11% despite increased supply
Condo prices continue to rise in the Greater Toronto Area even as new supply eases inventory pressures.
The average selling price of actively-marketing projects in the third quarter of 2018 was $745 per square foot, up 11% year-over-year. For unsold units, asking prices gained 19% to $972 psf on average.
Urbanation’s Q3 2018 condo market report also reveals that average resale condominium prices grew by 6.5% year-over-year to $690 psf, or $577,000 based on an average size of 837 sf; a sharp deceleration from the 27% annual pace recorded in Q3-2017.
Sales gain in Q3 but YTD is down from record high
Third quarter new condo sales were up 4% to 4,738 units in Q3-2018, reaching the third highest Q3 volume of the past 10 years.
Year-to-date sales of 14,055 units were down 46% from the record high of 25,839 sales recorded during the same period last year
Meanwhile, resales gained for the first time since Q1 2017, with a 2% rise year-over-year to 5,253 units.
Construction started on a record 8,150 new condominiums in Q3-2018, raising the total number of condos under construction to a new high of 67,581 units in 236 buildings. Projects under construction were 95% pre-sold on average.
“The condominium market has performed exceptionally well during its transition from an overheated 2017. Low supply and stabilized demand should continue to provide structural support for prices. However, signs of a slower pace of price growth ahead from factors including rising interest rates and higher completions should be factored into decision making with respect to purchasing investment units”, said Shaun Hildebrand, President of Urbanation.
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