Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its Q2-2018 condo market results today.
Highlights of the release include:
– Condo apartment construction starts in the GTA reached a record 7,981 units in Q2-2018
– The total number of condo units under construction also hit a high of 63,904 units, of which 95% were pre-sold. Construction was driven higher by a record number of new condo pre-sales in 2017.
– New condo sales dropped by 57% annually in Q2-2018 to 4,977 units as new project openings slowed and absorptions moderated to their longer-term average
– Of the 5,759 units brought to market in pre-construction projects in Q2-2018, 56% were pre-sold by quarter end, which compares to an 80% opening absorption of the record 9,521 units launched in Q2-2017
– The average opening price for new launches in Q2-2018 was $835 psf, up 18% year-over-year but down from the high of $954 psf for units launched in Q4-2017.
– Unsold inventory in development moved up to 9,341 units — the highest level in six quarters but well below the 10-year average of 15,807 units
– Condominium apartment resale volume was down 17% annually in Q2, marking an improvement over the 31% drop recorded in the previous quarter. Second quarter resales of 6,019 units remained 5% higher than the 10-year Q2 average (5,708)
– Annual resale price growth of 5% in Q2-2018 represented a strong deceleration from the 30% annual growth recorded a year ago in Q2-2017. Continued positive resale price growth has been supported by low levels of supply, as total listings have declined year-over-year for 10 consecutive quarters
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Source: New Condo Sales Slow as Construction Surges | Urbanation