The Toronto region’s new construction condo market took its first real pause in 15 years in the second half of 2022, according to Urbanation, a market research firm that tracks GTA development.
New construction condo sales were down only 30 per cent overall in 2022 because of a strong start to the year. Although the average price of a new condo increased 8 per cent year over year in 2022, by the fourth quarter prices had slipped 2 per cent annually on a per-square-foot basis to $1,329, according to an Urbanation report published Wednesday.
Urbanation says the drop in re-sale condo prices in the last three quarters has helped push down slightly the price of new and pre-construction units. Although there isn’t much developers can do in terms of discounting new condos, they have been offering more incentives to entice buyers who are looking at a record wide gap between new and resale units.