Toronto's Condo Market Hits Dizzying New Heights

The GTA reached a record-high 27,217 new-condo sales in 2016, a 34% spike over 2015, according to Urbanation. And expect ceaseless demand to continue fuelling a high-velocity market this year.

Rodeo Drive, the latest condo phase at CF Shops at Don Mills
Photo credit: Courtesy of Lanterra DevelopmentsRodeo Drive, the latest condo phase at CF Shops at Don Mills

Rodeo Drive Condos (rendered above), the latest phase of residential development at CF Shops at Don Mills, was a top-seller in 2016. Urbanation found overall GTA condo sales for the year beat the previous record set in 2011, but on far fewer pre-construction project launches: 18,466 units in 2016 versus 28,204 in 2011. Strong demand and a 6% decline in new launches pushed unsold inventory down to a 10-year low of 9,932 units, or just over four months of supply. (A balanced market for new condos is generally regarded as a 10-month supply, according to Urbanation.)

Urbanation Inc SVP Shaun Hildebrand
Photo credit: Ryan Starr | BisnowUrbanation SVP Shaun Hildebrand

Urbanation senior vice president Shaun Hildebrand, pictured at Waterworks, another big 2016 launch, said he expects broad-based demand in the new-condo market to carry forward in 2017. Buyers priced out of the low-rise segment, a surge in rental apartment demand and increased investor attention will put “heavy downward pressure on condo inventories.” This will support strong price growth, he said. Prices for sold units in active developments across the GTA grew at an average rate of 3% in Q4 (to $598/SF). Toronto itself recorded beefier gains, with selling prices for new product launches up 14% in 2016 from a year ago, to $746/SF.

Park Club, the latest phase at Elad Canada's Emerald City.
Photo credit: Courtesy of Elad CanadaPark Club, the latest phase at Elad Canada's Emerald City.

New-condo sales grew most in the 905 burbs, shooting up 82% to 8,703 units in 2016 — this was 32% of total GTA condo sales activity last year. Sales also increased a “robust” 57% in outer-416 areas of Etobicoke, Scarborough and North York, which had 7,397 units sell on higher launch activity, including The Park Club at Elad Canada’s Emerald City (above; we spotlighted the plans here). Toronto proper saw less impressive gains, with 11,116 units sold, owing to a 40% drop in launches. Demand-supply imbalance is most acute in the old city, Urbanation said, where unsold inventory plunged 57% to 3,403 units, barely a three-month supply.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Toronto Newsletters
Related Stories

Camden Property Trust Sells West Coast Portfolio, Clears $1.5B Target

Bringing Stability And Savings To CRE Insurance Through Working Layer

Former Arms Dealer Targeting Heartland Apartment Takeover Files For Bankruptcy

SEC Charges REIT, Its Founders With Alleged $152M Fraud Scheme

Miami's Condo Craze Has Developers Spending Millions On Sales Galleries

Slate, Hudson Cos. Picked To Develop Massive Queens Housing Project

Ryan Cos. Secures Permit For Austin's Sixth Street Redevelopment

Rapper Rick Ross Joins 670-Unit Miami Gardens Condo Project

How A New Financing Model Helps Spur More Mixed-Income Housing

Riverwards Group Secures Construction Financing For 155 Units In Olde Richmond

Mesirow Pays $132M For Midtown Luxury Apartment Tower

Integra Acquires Evacuated Broward Condo Complex Via Court-Ordered Auction