Photo: James Paolo/Flickr
Last year, the GTA new condo market experienced a major rebound, with sales spiking 51 per cent over the 10-year low of 2013.
According to Urbanation, the region counted 21,605 new condo apartment sales, representing the third best year for the market after 2011 and 2007. The fourth quarter alone saw 5,510 sales, up 25 per cent from the same time the year before.
“After taking a break in 2013, new condo buyers were enticed back into the market as pricing and incentives became more competitive across a greater selection of available units,” said Shaun Hildebrand, Urbanation’s Senior Vice President.
“The strengthening resale market and tight rental conditions, combined with lowered expectations for interest rates, should keep the new condo market humming in 2015.”
The GTA also broke records with 20,809 condo units completed in 2014. This brought down the amount of suites currently under construction from a high of close to 59,000 a year ago, to 52,446 last year. By the end of 2014, about 86 per cent of the remaining units under construction were pre-sold. For the pre-construction market, 69 per cent of the 28,447 units that have yet to break ground were pre-sold.
The GTA also saw new condo price growth with the index for average selling prices rising 3.6 per cent, year-over-year in the fourth quarter to $560 per square foot. The boost was the biggest in two years. The average price tag for an unsold unit grew at an annual pace 2.5 per cent to $579 per square foot.
The resale market also measured double-digit growth and broke records. In 2014, 17,819 existing condo suites were sold, a new high, and a 14 per cent jump over the year before. Prices in the fourth quarter rose 3.8 per cent to an average of $431 per square foot, or $389,000.
Earlier this year, Urbanation also released details on GTA condo rentals, which also broke records in 2014.