Toronto condo sales and prices rose in Q3, but rental prices fell

Condominium apartment sales saw a 10.5% spike; average selling price gained 8.3% year-over-year

The condominium market in the Greater Toronto Area (GTA) continues to show strength despite the pandemic as both sales and prices rose in the third quarter.

According to the Q3-2020 condominium market statistics that the Toronto Regional Real Estate Board (TRREB) released on Oct 23, the GTA reported the sale of 7,072 condominium apartments or 10.5% more than the same time last year.

The overall average selling price of a condominium apartment rose 8.3% to $633,484 compared to Q3 2019, despite an 84.6% year-over-year increase in the number of new listings totalling 17,613 in the third quarter this year. The average selling price of a condominium apartment in the City of Toronto at $680,963 also went up by a similar rate over the same period.

“The condominium apartment segment experienced the second best third quarter on record in terms of sales and the best third quarter on record in terms of the average selling price,” TRREB president Lisa Patel said in a statement. “While the pace of year-over-year condo sales and price growth remained strong, it was lower than that reported for low-rise home types.”  

Patel explained that the condominium market “became much better supplied as many investors moved to sell their units, due in part to softer rental market conditions and a short-term rental market that was impacted by stricter regulations and the Covid-19-related drop in tourism.”

TRREB’s chief market analyst Jason Mercer said while condominium buyers had more choice in the third quarter compared to the past few years, there was sufficient competition among buyers to support average selling prices that are substantially above last year’s levels.

“It is important to note that one quarter does not make a trend, either on the demand or supply sides of the market. How the relationship unfolds between condo sales and listings over the next three to six months will dictate the longer-term direction for selling prices,” Mercer adds.

The condominium rental market in the GTA also reported growth in the third quarter of 2020 but saw a notable decline in rental prices.

TRREB reported 14,036 condominium apartment rentals in the third quarter, which represents a 30.2% spike over the same period last year. The number of condominium apartments listed for rent in this year’s third quarter also went up by nearly 113.9% compared to the same period last year, resulting in more choice and negotiating power for renters, Patel said.

The average rent for a one-bedroom condominium apartment fell 11.1% in the third quarter to $2,012, compared to $2,262 in Q3 2019. The average rent for a two-bedroom condominium apartment also declined by 9.2% over the same period to $2,672, compared to $2,941 in the last quarter.

Mercer said the demand for condominium rentals remained very strong in the third quarter but was overshadowed by the rapid rise in rental listings. “Once we move into the post-COVID period, population growth from immigration and non-permanent residents will bolster rental demand and absorption,” he adds.

Below is a breakdown of the average selling price of condominium apartments by area:

 

Region

Average Price

Q3 2020

Q3 2019

Halton Region

$560,570

$500,941

Peel Region

$521,588

$469,381

City of Toronto

$680,963

$628,281

York Region

$579,509

$530,718

Durham Region

$427,298

$380,256

Other Areas

$434,642  

$354,666

Jean Lian is Head of Communications and Brand Marketing with HomeLife Realty Services Inc. in Toronto. Jean can be reached at marketinghomelife@gmail.com.