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Number of unsold Toronto condos starting to drop as sales of new units pick up

The number of unsold condominiums across Canada’s largest city dropped 13 per cent in the second quarter from a year ago, according to research firm Urbanation Inc.
 

During the same period, 6,297 new condominium apartments were sold across the greater Toronto area — an 11 per cent increase from a year ago. Urbanation said the activity was driven higher by a large increase in sales of units that were under construction or recently completed.


The firm said among new projects that opened for sale in the second quarter, 56 per cent of 5,7537 units launched sold during the period. That compared with 54 per cent a year ago.

However, the total number of units across all stages of development still unsold in the Greater Toronto Area is 17,709. Based on the 20,763 units that sold over sold the previous four quarters, it would take 10.2 months for the market to absorb that inventory.


Urbanation said at 10.2 months it considers the market balanced. A year ago, there was 13.5 months of supply.

 

 

“The Toronto condo market remains highly absorbed as demand is showing strength across the board. From higher-end product in the core to more entry-level units in the 905 Region, sales and rentals are trending higher,” said Shaun Hildebrand, Urbanation’s senior vice-president, in a statement.

Prices continue to increase, albeit moderately. New condo prices were an average of $566 per square feet in the second quarter, up 2 per cent from a year ago.

 

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