Canada's Condominium Magazine
New condominium apartments in high-rise and mid-rise, led a surge in sales for October, as reported by Building Industry and Land Development Association. Short inventories are a key factor, together with the shift in preference to condominiums for homeowners in the GTA area. Sales of new condos (high-rise) soared over 2016 and 2015 numbers — 4,885 in Oct 2017 versus 2,871 in 2016.
5,337 homes sold in October, with fully 91 percent of them — 4,884 units — being multi-family homes. Only 493 were low-rise single family detached or semi-detached homes or townhomes.
Condo sales for October were 81 percent above the 10 year average of 2,697 — and represents the highest October sales recorded. Year-to-date, as of October, 82 percent of all homes sold in the GTA were condo apartments.
“October data shows that the new homebuyer is left with very little choice when it comes to purchasing a new home,” says BILD President and CEO Bryan Tuckey. He added: “Provincial intensification policy has our members building more high and mid-rise dwellings making housing choices a challenge. The cost of a single-family home is out of reach for many consumers pushing them to buy a condo over a house. As a result, we are seeing record-breaking condo sales and higher prices this year for new low-rise homes.”
Supply of new housing “below healthy levels”
Based on demand, the inventory of available new homes is low, which continues to drive pricing and sales. When combined with the shift in preference to high-rise condos — driven by affordability and short-commute needs — the new condo market will likely continue its record pace. [See our previous report on the shifts in preference to high-rise condominiums>>]
While supply of new housing increased again in October and reached 12,500 units, it is still well below what is considered a healthy level. Supply of new housing is typically measured by the number of new homes available for purchase in builders’ inventories at the end of the month. At the end of October, there were 9,308 multi-family homes and 3,192 single-family homes available in the GTA.
“Demand for newly-built condominium apartments is being fueled by three key buyer groups – small investors who have become the de facto providers of new rental housing supply in the GTA; end user buyers who might prefer a single-family home but are seeking out more affordable options; and the more traditional end users who value the lifestyle and amenities of well-located projects,” said Patricia Arsenault, Altus Group’s Executive Vice President of Research Consulting Services.
Prices of available new homes in October increased slightly for both single-family low-rise homes and multi-family homes. The average for available new single-family homes was $1,217,428 up from $1,204,829 in September, and 29.8 percent above last October’s average price of $937,689. The average price for available new detached homes was $1,548,888 and the average for available new townhomes was $995,571.
Meanwhile the average price of available new condo apartments in high-rise and mid-rise buildings and stacked townhomes was $677,456 in October, up from September’s $661,188. The average price per square foot was $791 and the average unit size was 857 square feet.