905 overtakes 416 for GTA new condo sales in 2020
February 25, 2021
In a year when construction levels soared to record highs, the 905 area overtook the 416 for new condo sales in the GTA, according to the year-end 2020 Condominium Market Survey from Urbanation Inc.
New condominium unit sales in the GTA declined 28 per cent in 2020 to 18,247 units, the lowest annual total since 2013 and 15 per cent below the 10-year average (21,421). Sales remained in line with new launches of 18,004 units last year, down from 25,296 launches in 2019. The 4,642 new condominium units sold in the fourth quarter of 2020 was down 43 per cent year-over-year and 22 per cent below the 10-year Q4 average of 5,960. However, a record third quarter brought total units sold during the second half of the year to 11,031 units, above the 10-year average of 10,491 units for second half sales.
Affordable sites
“The GTA new condominium market recorded a respectable number of sales in 2020, as the industry pivoted to a virtual sales environment amid lockdowns caused by COVID-19,” says Shaun Hildebrand, president of Urbanation. “The shift in activity to the 905 region accelerated last year, as demand for relatively affordable suburban sites intensified alongside the broader real estate market.”
For the first time ever, the 905 region represented more than half (51 per cent share) of new condo sales, with 9,288 units sold in 2020 – the third highest annual total on record behind 2019 (10,842) and 2017 (11,531). In Toronto, sales declined 38 per cent in 2020 to 8,959 units, representing a more than 15-year low.
Selling prices for new condominium units that launched for presale in 2020 averaged a record $1,063 per sq. ft., up 10.3 per cent compared to average selling prices for new launches in 2019 ($964). Average 905 selling prices increased 16.9 per cent to $928 per sq. ft., while Toronto prices grew 10.8 per cent to $1,227.
Unit mix
Despite the shift in new condominium sales to the 905 region, the mix of new units brought to market last year became smaller. In 2020, a 60 per cent share of GTA new launches were represented by one-bedroom and studio units, increasing from a 53 per cent share of new launches in 2019. The average unit size of GTA new launches in 2020 was 688 sq. ft., down from an average of 715 sq. ft. in 2019. Interestingly, the average size of new launches in Toronto increased from 676 in 2019 to 706 sq. ft. in 2020, while the average size of new launches in the 905 declined from 735 in 2019 to 690 sq. ft. in 2020.
Importantly, COVID-19 failed to slow the GTA construction industry in 2020, Urbanation says. Construction starts for new condominium units reached their second highest level on record in 2020 at 26,662 units, increasing nine per cent from 2019. At the same time, a record high 22,473 new condominiums reached completion. At the end of 2020, a record high 81,029 condominiums were under construction across the GTA.