While the rest of the GTA housing market has had a bumpy year, the new condo market has been thriving for months.
Last quarter, new condo sales in the area grew 4 percent year-over-year, the third highest Q3 sales volume in 10 years, according to a new report from real estate research firm Urbanation.
While that’s still down 46 percent from Q3 2017’s record 25,839 sales, it’s further proof that the market has remained strong despite rising interest rates and stricter mortgage rules imposed earlier this year.
And as demand for the property type continues to grow, prices are rising — fast.
“The average sold price for all actively marketing projects in Q3 increased 11 percent annually to $745 per-square-foot, with asking prices for unsold units up 19 percent to an average of $972 per-square-foot,” writes Shaun Hildebrand, president of Urbanation, in the report.
What’s more, new projects that opened for pre-sale last quarter saw a 33 percent year-over-year jump in price to $745,416. Average resale condo prices grew by 6.5 percent year-over-year to $557,000 with an average unit size of 837 square feet.
“The condominium market has performed exceptionally well during its transition from an overheated 2017,” writes Hildebrand. “Low supply and stabilized demand should continue to provide structural support for prices.”
But he is quick to note that price growth could slow heading into 2019, as higher interest rates and a higher rate of condo completions could cause investors to shy away from the market.
When it comes to supply, construction began on a record 8,150 new condos last quarter, raising the number of condos under construction to a new high of 67,581 units in 236 buildings.