COVID-19 has hurt Toronto’s condo market.
New data shows that the typically resilient condominium market in Canada’s largest city experienced a significant slowdown in the second quarter of the year, with sales falling to their lowest level since 2009.
According to the latest Condominium Market Survey released by Urbanation Inc., sales of new condos in Toronto fell 85% during the second quarter of 2020, with only 1,176 units being pre-sold compared to 11,415 units in the second quarter of 2019.
Despite the lower-than-normal sales activity, the survey saw an upward trend in both price and construction, with developers regaining confidence throughout the quarter as sales migrated online, inventories stayed low and construction on new projects resumed.
Selling prices for new condos in the Greater Toronto Area (GTA) rose 8% year-over-year, with new projects averaging a record $867 per-square-foot compared to $864 in the first quarter. The price of unsold units in 2020 increased 9% year-over-year, edging up from $1,080 in the first quarter to $1,087 per-square-foot.
The third quarter is expected to see an improvement in condo supply, according to Urbanation, with projects that were delayed to the fall amid COVID-19 closures being pulled back to the summer as the resale market stabilizes.
