TORONTO — Toronto’s residential real estate market saw an increase in total new-home sales in 2020, with a significant increase in single family home sales, according to new data from Altus Group.
The report also found that overall year-over-year investment activity in the GTA dropped by 23 per cent compared to a year ago. Investment activity slowed at the start of the year due to uncertainty, before increasing in the second quarter, said Altus.
Investor confidence increased in the second half of 2020, but price challenges and low inventory were major challenges.
The industrial sector saw an increase in investment activity of five per cent, from $4.4 billion in 2019 to $4.6 billion in 2020. The remainder of the asset classes fell, most notably the office sector by 61 per cent to $1.6 billion.
Apartment property transactions dropped by 37 per cent mainly due to the lack of product, the report stated. Meanwhile, the GTA office availability rate rose to 12.4 per cent in the fourth quarter, largely due to the increase in sublet space. Office demand continues to be influenced by remote work and companies continuing to reassess office requirements, said the release.
Total new-home sales increased by five per cent in 2020 from 2019, and three per cent above the 10-year average. Single-family sales increased 81 per cent, up 25 per cent from the 10-year average.
The benchmark price of a new single-family homes in the GTA finished 2020 at a record $1.32 million, surpassing the peak reached in July 2017. New supply was disrupted by the pandemic resulting in delayed launches and some cancellations.
Condominium sales accounted for 20,696 new home sales, down 22 per cent from the previous year. New condominium sales in 2020 in the City of Toronto dropped by 31 per cent.