Condo sales in Toronto spike over 10 percent in Q3, 2015

High-rise condo sales climbed to ever dizzying heights in the third quarter of 2015, as the number of units that changed hands hit a record 6,586 – according to the latest condo report from the Toronto Real Estate Board (TREB). That’s close to an 11 percent spike over the same three-month period last year (which encompasses July, August and September).

The average sold price of a condominium unit in the Greater Toronto Area saw a 5.4 percent increase compared to the third quarter of 2014, as prices currently hover around $379,006.

It’s worth noting however, condos located in the far more densified area of Toronto Central carry a premium of 21 percent versus the regional average, as units stretching along the main arteries of Yonge and Bay sold for an average of $425,000.

For the City of Toronto as a whole, which accounted for over 71 percent of condo sales in Q3, average prices stood at $405,000.

P.S. If you want to know average resale or rental prices for condos in your area, simply type out your nearest major intersection in the comment section below and we’ll provide the latest figures for you.

In Mississauga, the region’s second largest condo market behind the City of Toronto, condominiums sold for an average of $283,667.

While condos don’t boast the double-digit price growth regularly experienced in the low-rise freehold market, where a tight supply of new listings have seen persistent spike in values, high-rise units do fare better on other fronts. Their lower-price points (which sit at more than half the average price of a detached property), low maintenance lifestyle and convenient location minutes to transit hits the needs of a huge number of buyers.

On the investor’s side of the equation, condominiums have also seen strong returns in the rental market as average lease rates hover around $2.34 per square foot.

Monthly leases for one and two-bedroom units sit at around $1,692 and $2,349 respectively.

BMO Senior Economist Sal Guatieri recently highlighted how Toronto condo owners are outpacing TSX investors, as he cited “Since the start of the millennium, Toronto condo prices have marched steadily higher (outside of a brief dip during the recession), averaging yearly gains of 4.6 per cent and besting the more volatile TSX.”

The total number of new condo listings across the Greater Toronto area saw a continued upward trajectory of 6.6 percent, which was notably a lesser increase than the 10.8 percent jump seen on the sales front.

“The condominium apartment market segment has been a key contributor to overall growth in GTA home sales this year,” said TREB President Mark McLean. “With continued sales growth expected in the fourth quarter, we are on track for a new record in condo transactions through TREB’s MLS® System this year. ”

“As the absorption rate for condos accelerated over the last year, tighter market conditions have resulted in sustained price growth,” continued McLean.
•Average Condo Price: •Greater Toronto Area: $379,006
•City of Toronto: 405,865
•Toronto Central: $459,297
•Toronto West: $327,877
•Toronto East: $272,015
•Mississauga: $283,667

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