Toronto’s condo market weakness is especially apparent in the downtown area, which saw a 215% annual increase in listings last month, according to latest data from Urbanation and the Toronto Regional Real Estate Board.
The market saw a total of 6,480 condos for sale in September, compared to 5,599 units just a month prior and 3,403 listings during the same time last year, Bloomberg reported.
For perspective, the number of listings across all residential asset classes in Toronto went up by a mere 5.3%.
“Demand is just not keeping up with new supply right now,” said Shaun Hildebrand, president of Urbanation.
The condo sales-to-new-listings ratio in Toronto’s core dropped to 24% last month. The last time that it was around this low was the early 1990s, Hildebrand said.
Aside from an influx of newly built complexes, the entry of condo units previously used as Airbnb rental suites into the market was a major driving factor, Urbanation said.
GTA average rents declined by 11% annually in September, while downtown average rents fell by 14.5% during the same time frame, a trend that industry players attributed to waning demand over the last few months.
“It’s simply because of all the new construction completions and absolutely no new blood of tenants coming in,” said Simeon Papailias, co-founder of management company Real Estate Center. “We’re going to see people move to get cheaper rents.”