It’s the hottest summer on record, and Calgary’s multi-family sales reflect that spike. Whether townhomes, wood frame condominiums, or high-rise concrete builds, Calgary remains a massive draw for out-of-province investors and new home seekers, according to exclusive data from Zonda Urban.
Zonda Urban recorded 1,658 new multi-family home sales in Q2 —the second-highest quarterly sales total on record. The second quarter also saw several sales records, including the most wood frame condominium sales in one quarter (888) and the most condominium sales of any kind in one quarter (1,099).
Condominiums remain in high demand, representing two-thirds of the sales this year (2,977). Meanwhile, the 559 Q2 townhome sales were the second highest-quarterly total on record. Ten new projects were launched in the quarter, adding 225 new townhome units, 502 new wood frame units, and 273 new concrete units to the market.
Average new townhome and wood frame condominium pricing has seen substantial gains throughout 2023, increasing by 13.6 and 7.0 percent, respectively. This is primarily due to the many new projects launches that market to Ontario investors. These builds often command top dollar on the market.
Ontario investors are becoming more selective
Previously, Calgary was swathed in a widespread demand from Ontario investors. But recently, interest has pivoted to a project-by-project basis.
Ontarians are being swayed by the marketing directly towards them instead of generic advertising for the area. Meanwhile, local buyers and inter-provincial or international migrants continue to increase the city’s overall population.
The higher migratory trends have continued throughout the year as home prices in the province remain relatively lower compared to other Canadian markets. The resulting increase in demand for Calgary’s rental market and the new multi-family home market is anticipated to continue as these trends hold.
