Photo: James Bombales
New condo sales reached sky-high levels across Canada in 2017, with the most units sold, by far, in the Greater Toronto Area (GTA). The GTA wasn’t the only market to have a banner year — Edmonton and Calgary led the nation with the largest annual percentage growth in new condo sales.
“It was a red hot year for sales, but one of the things we have been seeing is the fact that Calgary and Edmonton are getting better and Toronto and Vancouver are pretty much selling as much as they possibly can,” Matthew Boukall, senior director at Altus Group tells BuzzBuzzNews.
Housing Market News Alerts
Sign up now for news alerts on the Canadian housing market
Last year, new condo sales in Edmonton grew over 60 per cent year-over-year with a total of 1,289 units, according to data that Altus Group published today. This is the largest percentage growth of the markets tracked by the real estate data provider, which include the Greater Toronto Area (GTA), other areas within Ontario’s Greater Golden Horseshoe (GGH), Calgary and Vancouver.
“This significant increase was connected to the downtown condo market where the new Rogers Centre attracted buyers to the city’s core, with sales increasing by 160 percent year-over-year,” writes Altus, in a press release.
Calgary, Alberta’s most populous city, also experienced notable growth with a total of 2,083 new condos sold in 2017, soaring 42 per cent from 2016.
According to Altus, buyers are returning to Calgary’s suburban areas, rather than the downtown core. Edmonton is experiencing a different kind of sales surge, with most new condo sales focused in the city’s core.
Although the Alberta cities saw significant year-over-year sales growth, the GTA dominated new condo sales last year with a record 36,429 units, an increase of 25 per cent from 2016.
Meantime, inventory in the GTA fell to its lowest level since Altus began tracking the market.
With the GTA starting 2018 off with low new condo inventory, Boukall says supply is expected to remain tight in the market this year, while demand will continue to be robust.
Unlike the other major cities monitored by Altus, Metro Vancouver was the outlier in 2017, recording a 44 per cent year-over-year decline in new condo sales. Last year, a total of 10,939 units sold in the market, but Altus is quick to note that these units represent a 90 per cent sales rate of all new inventory that came into the market last year.
“It’s not that there wasn’t demand, there just wasn’t enough supply to keep up with demand, and what that meant is, year-over-year, we saw a decline,” says Boukall.