A total of 6,297 new condominium units were sold in the Greater Toronto Area during the second quarter of this year, according to Urbanation market results released on Aug. 5. This represents an increase of 11 per cent over the same period last year.
Sales of units that were under construction or recently completed drove much of the activity seen last quarter. New projects also saw high demand as 56 per cent of the 5,737 new launches were absorbed this period, compared to 54 per cent for new launches in the second quarter of 2014.
The level of unsold inventory in all stages of development fell 13 per cent annually to 17,709 units. When compared to the 20,763 units sold over the past year, there were 10.2 months of new condo unit supply, indicating a balanced market. This number is down from last year’s 13.5 months of supply.
Completed and unabsorbed inventory fell to 1,425 units at the end of the second quarter from a recent high of 1,647 at the end of the first quarter. Ninety-four per cent of units at the occupancy stage were sold, while 87 per cent of units under construction were sold and 67 per cent of pre-construction units were sold.
“The Toronto condo market remains highly absorbed as demand is showing strength across the board. From higher-end product in the core to more entry-level units in the 905 region, sales and rentals are trending higher,” said Shaun Hildebrand, senior vice president, Urbanation, in a press release.
Annual price growth in new condos clocked in at two per cent in Q2 for an average of $566 per square foot. Annual resale price growth rose to 6.8 per cent to an average of $453 per square foot as sales grew 21-per-cent year-over-year in Q2 to 6,443 units.
Condo rentals saw similar growth as a 22-per-cent uptick in leases led to a new high of 8,200 units and an increase in average rents of 4.6 per cent annually to $2.48 per square foot.