TORONTO — Condominium sales in the Greater Toronto Area (GTA) reached a record high in June, according to statistics compiled for the Building Industry and Land Development Association (BILD).
Sales of new multi-family condo apartments in highrise and mid-rise buildings and stacked townhomes increased nearly 59 per cent from May and prices for available units also continued to push higher, according to Altus Group.
New home sales were up 23 per cent from June 2016 with 28,889 new homes sold so far in 2017, a 14-per-cent increase from the same period in 2016 and a 44-per-cent jump from the 10-year average, reported a media statement issued July 25.
"We continue to see that the province’s fair housing plan in effect since April has had little impact on the new-home market," said BILD president and CEO Bryan Tuckey in a statement. "Unlike the resale market, which experienced a slowdown last month, the numbers reflected in the new-homes market are quite different. Prices continue to rise and supply continues to be low. Three out of four of the new homes purchased in the GTA so far this year have been condo apartments. With condo prices continuing to escalate, this segment of the market is becoming out of reach for many consumers."
About 91 per cent of the 6,046 new homes sold last month were multi-family condo apartments in highrise and mid-rise buildings and stacked townhomes, while only nine per cent were low-rise single-family homes.
New-condo sales surpassed the previous record set in March 2017 with 5,495 units sold last month, up by 89 per cent from a year ago and well above the 10-year average of 2,550 units sold. In June, 551 new single-family low-rise homes were sold reflecting a 72 per cent drop from last year and 64 per cent off the 10-year average.
"The record number of condominium apartment sales in June was the result of a perfect storm of factors," said Patricia Arsenault, Altus Group’s executive vice-president of research consulting services.
"These factors include the sizeable number of units in new condo projects opened in May and June (over 8,500); demand from end-user buyers who might have preferred a single-family home but have adjusted their expectations due to lack of affordable supply; and heightened investor interest due to the rapid price increases for condo apartments in recent months."
The average price of available new condo apartments continued to rise with an increase of more than $22,000 from May. June’s $627,000 average price marked a 34-per-cent increase from a year ago.
The average available unit was 845 square feet with an average price per square foot of $742. A year ago, the average price per square foot was $587.
There was a small increase from May in the average price of available new low-rise single-family homes reaching approximately $1.2 million but more than a 40-per-cent increase from a year ago when the average price was $887,543.
While the upward pricing trend continued in the low-rise single family sector for available new semi-detached and townhome units (to $943,115 and $1,091,151, respectively), the average price for a detached home decreased by nine per cent in June to $1,761,985.