Loading...Condos continue to be one of the leading affordable housing options for Canadians in the GTA. The numbers say it all – the second quarter of 2019 reached sales of 8,902 units outside the downtown core. Comparing statistics to the same period last year, sales this year have increased a substantial 77%! The second quarter of 2019 has the second-highest number of condominium sales in since the market peak in the second quarter of 2017 with 11,413 unit sales.
Record High Sales in 905 as GTA Prices Reach $1,000 PSF – our newly released Q2 report: pic.twitter.com/UwFaZP6zyz
— Urbanation Inc. (@Urbanation) August 1, 2019
What’s interesting is that more than half of the units sales occurred in the 905 regions. In the second quarter, 5,127 units were sold, representing 58% of GTA sales. In the outer 416 area, there were 2,093 units sold, representing approximately 23% of GTA sales. The remainder of the sales were in the Former City of Toronto, in which 1,682 units were sold. The Former City of Toronto represents 19% of GTA sales.
A visual on the near record quarter for new condo sales in the GTA (not shown a very strong one for Hamilton-Grimsby as well): pic.twitter.com/kxvOQgEXub
— Urbanation Inc. (@Urbanation) August 1, 2019
The first quarter was not as strong in which 3,065 units were sold. In total, 11,967 condo units were sold within the first two quarters of this year. Nevertheless, the first two quarters have already pushed the 10-year average, which is 11,205 units sold.
The population is not only increasingly seeking affordable housing options – but also in the outskirts of the GTA. After a detailed overview of the statistics, it is evident that the market demands are shifting to areas outside of the downtown core. Condominium sales outside of the downtown core have more than doubled compared to last year’s quarter. Meanwhile, sales in the downtown core dropped by 12% to 1,682 units. The increase in condo sales in these regions is due to several factors. These areas are undergoing a significant transformation with increased transit hubs, introduction of new employment opportunities through mixed-use developments, and improvements in retail and amenities.
Seeking a condo as your next home? See some pre-construction projects below.
Atlantis Condos by Zonix Group
Spring Farm Condos by RioCan Living
250 Lawrence Condos by Graywood Developments Ltd
The increase in sales can also be attributed to cheaper borrowing costs, a strong job market and perhaps tighter conditions in the resale market. The numbers also demonstrate that not only are people looking for condominium units outside the GTA, but also for inexpensive projects. In fact, 65% of pre-sale launches in the second quarter of this year priced below $900/sq. ft were sold. As for pre-sale launches outside of the GTA and in the Hamilton area, 68% of launches priced below $600/sq. ft were sold.
Looking at these statistics from a price perspective, it is evident that the market demands are shifting to inexpensive projects and projects outside the GTA. As we anticipate numbers for the third and fourth quarters of 2019, it wouldn’t be surprising if we surpass record-breaking sales…
* We are not responsible for any errors, omissions, or representations on this article. The data in this article are from sources listed below.
Sources: blogTo / Canadian Real Estate Magazine