“After taking a break in 2013, new condo buyers were enticed back into the market as pricing and incentives became more competitive across a greater selection of available units,” said Shaun Hildebrand, Urbanation’s senior vice president in a recent release. “The strengthening resale market and tight rental conditions, combined with lowered expectations for interest rates, should keep the new condo market humming in 2015.”
21,605 new condominium apartments were sold across the GTA in 2014, which marks a 51 per cent increase from the ten-year low seen in 2013.
And inventory is still high, with 20,809 condo units completed in 2014, leaving 52,446 units still under construction. Of those units currently being built, 86 per cent have been pre-sold.
As for unit costs, the average selling price reached $560 per square foot in Q4, a 3.6 per cent year-over-year increase.
“On the resale front, sales of condo apartments grew by 14 per cent in 2014 to reach a record high 17,819 units. Average prices were up 3.8 per cent year-over-year in the fourth quarter to an average of $431 per square foot, or $389,000,” the official release states. “Condo rental apartment results recently reported by Urbanation also show a record amount of activity, with the number of units rented in 2014 rising 15 per cent to a total of 22,765, while rents grew by 1% annually in Q4 to an average of $2.39 per square foot, or $1,816.”
One major market recorded its third best year for condo sales on record in 2014, and saw a marked increase year-over-year.