High interest rates, market uncertainty continue to 'grip the new condominium sector' in GTA: report

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The number of new condos sold in the Greater Toronto Area so far this year is at its lowest level in a decade, with just under 10,000 units purchased since the beginning of 2023, according to a new report.

The results of Urbanation’s Q3-2023 Condominium Market Survey show that 9,568 units have been sold in the GTA year-to-date, down 47 per cent from the same period in 2022.

“New condo sales have been impacted by fewer new project launches. A total of 2,491 units launched for presale in Q3-2023, down 23 per cent annually,” the report read.Urbanation said 40 projects totalling 13,721 units had an expected launch date in 2023 but now “remain on the shelf,” according to its analysis.

The report notes that buyers and developers focused more of their activity on “lower priced locations mainly in the 905 region,” which represented more than half of the total sales for the third quarter of 2023. “As presale activity typically impacts construction starts with a 12-18 month lag, the slowdown in new condo sales that began in the second half of 2022 is expected to continue weighing on construction starts in the coming quarters,” Urbanation said.

 

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