Condos are a hot commodity throughout the Greater Toronto Area (GTA), especially in Peel Region.
According to the Building Industry and Land Development Association (BILD), the GTA new home market saw a record number of condominium apartment sales in August.
Condominium apartments -- including units in low, medium and high-rise buildings, stacked townhouses, and loft units -- accounted for 3,162 units sold in August, according to Altus Group*, BILD’s official source for new home market intelligence. This marked the highest number of condos sold in August on record, up 35% from last August’s robust condominium apartment sales and 129% above the 10-year average.
The sales increase was most drastic in Peel Region, which saw the number of condo apartments sold climb from 177 in August 2020, to 1037 in 2021. Peel Region includes Mississauga, Brampton, and Caledon.
City of Mississauga/Facebook
Toronto, on the other hand, saw 1168 condos sold in August 2020, and just 904 sold in August 2021.
Meanwhile, sales of single-family homes in the GTA -- including detached, linked, and semi-detached houses and townhouses (excluding stacked townhouses) -- accounted for 605 units sold in August, 15% below the 10-year average.
When it comes to the apparent condo craze in Peel Region, it could have something to do with the number of shiny new residential towers that popped up lately.
"Buyers flocked to the new condominium apartment market in record numbers in August as builders pumped in unprecedented levels of new supply,” said Edward Jegg, Analytics Team Leader at Altus Analytics, Altus Group. “But in the new single-family sector, supply shortages continued to weigh on sales."
Remaining inventory for condominium apartments increased in the GTA compared to the previous month, to 9,967 units. Remaining inventory for single-family homes decreased compared to the previous month, to 1,354 units. Remaining inventory includes units in pre-construction projects, in projects currently under construction, and in completed buildings.
The benchmark price for new single-family homes in the GTA reached a record high of $1,521,968 in August, which was up 30.1% over the last 12 months (not that any first-time homebuyers need the reminder). The benchmark price for new condominium apartments eased in August compared to the previous month, to $1,069,700, which was still up 10% the last 12 months.
“August’s benchmark prices underline the fact that increased housing supply is an important factor in stabilizing housing prices,” said Dave Wilkes, BILD President & CEO. “It’s time to move from words to action and address our region’s housing supply problem by reducing approval times, designating land for growth, building infrastructure to support development, and ensuring taxes on new development are transparent, equitable, and invested as intended to support growth."
