New data from the Altus Group reveals the heat in the Canadian new condo market in 2017.
The GTA was the hottest market with 36,429 unit sales in the year, setting a new record. There was a 25% increase in unit sales compared to the previous year, an extra 7,297 units.
Prices hit new record highs as the supply of new condos failed to keep up with demand, and inventory fell to its lowest since Altus began tracking the market.
“The sales activity across the country indicates that demand for new condominium apartment product was very strong in 2017, but particularly in the GTA,” said Matthew Boukall, Senior Director at Altus Group.
Elsewhere in the Greater Golden Horseshoe, there were 3,647 new condo sales in 2017, down 8% from 2016.
Edmonton posted a huge increase in sales of new condo units, up 60% year-over-year to 1,289 units. Calgary also saw a rise in sales, with 2,083 new condos sold, up 42% from 2016.
The difference between those two Albertan markets was that Edmonton saw weaker suburban sales growth while Calgary’s suburbs saw stronger increases than its downtown core.
“While we expect to see some moderation in the GTA sales volumes in 2018 given price escalation in recent years, rising interest rates, tighter lending criteria and additional mortgage stress testing, strong demand in Vancouver and Calgary is expected to push new condominium apartment sales higher provided a broader range of affordable product can be brought to market,” added Boukall.