According to the latest Q2-2021 Condominium Market Survey results, Urbanation revealed that the Greater Toronto Area (GTA) has posted its third-highest quarterly sales total for new construction market.
New condominium apartment sales in the Greater Toronto Area totaled 9,001 units in the second quarter of 2021, which is an increase of 5.5 then Q2-2020 (1,637 units). The 905 region of the GTA led new condo market activity with a 58% share of sales in Q2-2021.
“The second quarter showed that the GTA new condominium market not only fully recovered from COVID-19 but also returned to near record high sales volumes. The 905 continued to be a driving force as developers and buyers have shifted to more affordable locations of the region,” said Shaun Hildebrand, President of Urbanation.
In Q2 2021, 8,490 new condominium units were launched for pre-sales in the GTA, with a record high absorption rate of 81%.
The new units had an average price of $728,160, or $1,110 per square foot (psf) based on an average unit size of 656 square feet. New condos in the GTA were priced at an average of $834,504 ($1,276 psf) and units launched in the 905 region of the GTA were priced at an average of $661,537 ($1,007 psf).
Unsold inventory in the GTA declined 10% year-over-year to 11,716 units, representing an 11-quarter low and 23% below the 10-year average (15,179 units). In Q2 2021, average prices for unsold units available increased 9% from a year ago to a record high $1,196 psf.
The number of new condominiums under construction in the GTA increased 11% year-over-year to a record high of 86,346 units. There was an additional 22,857 units in active projects in the pre-construction stage. A total of 3,271 units reached completion in the second quarter and 10,938 units were scheduled to reach completion during the second half of the year, which would bring the total for 2021 completions to 18,157 units, representing a 19% decline from the record high 22,473 units that reached completion in 2020.
“With inventory approaching a three-year low, expect further upward pressure on new condo prices in the near-term,” said Hildebrand.