I’ve been having a lot of fun digging into Urbanation’s 2014 first quarter data for new construction condominiums in Toronto. With so many differing opinions in the media about what’s going to happen when all the cranes in the sky finish building all the condos, it seems like it’s time to actually look at the facts.
The amount of inventory of new condominiums varies widely across the GTA. As expected, demand for condominiums downtown is far greater than in the ‘burbs.
- City of Toronto: 70% sold
- Downtown Toronto: 88% sold
- Etobicoke: 55% sold
- North York: 53% sold
- Markham: 45% sold
- Mississauga: 42% sold
Fact 2: The Market for Pre-Construction Condos is Back
I’ve been hearing rumours of line-ups at new condo launches lately, and the numbers certainly tell the same story:
- 5,140 new condominium units sold in Q1 2014 – that’s an 88% increase from Q1 2013
- Unsold inventory declined 5% year-over-year
- Prices for new condominiums were up 3% annually, to an average of $549/square foot
Fact 3: Small Really is Better
Small units (one bedroom or studios) continue to be the most popular units (and actually accounted for 75% of the sales in Q1).
There are actually 194 condo projects under construction, representing 55,320 new condo units.
Fact 5: The Pre-Construction Condo Market is About to Get Even More Interesting
Predictions for the second quarter of 2014 are that 27 new condo projects will be launched, representing 5,728 new units. In the first quarter, 18 new projects were launched (4,152 units).