Ontario & GTA Housing Market

GTA New Condo Prices by Month

Greater Toronto Area (GTA) New Condo Pricing Trends for 2023

In the heart of the GTA, new condo prices on a per-square-foot basis have skyrocketed by 63% since 2018. However, as of August, they’ve witnessed a slight dip of 8% annually, hovering just below the $1,500 psf mark.

Delving deeper, the concluding sales figure for a brand-new condominium in the GTA during August settled at an impressive $1.33 million. This showcases a decline of 21% on a year-over-year basis.

As 2023 unfolds, a noticeable trend is the reluctance of high-rise developers to slash prices. Instead, many are leaning towards attractive incentives to spur sales. Yet, it’s intriguing to note that the top-performing condo launches are being priced at 2021 rates, leading to a moderation in the average price landscape.


New Condo Price Growth by Municipality & Year

2023 Analysis: New Condo Pricing Trends Across Key Cities

In 2022, a notable six municipalities witnessed a surge in new condominium prices per square foot, exceeding 25%. Kitchener and Waterloo stood out remarkably, boasting an increase of 45% and 44% respectively. What was once considered secondary, the KW area is now escalating in value, paralleling GTA suburbs.

Shifting focus to Toronto, the city saw its new condo prices climb by 5% annually in 2021, followed by a more substantial rise of 13% in 2022. However, a slight 2% dip has been observed year-to-date, as of August 2023.

It’s worth noting that the municipalities marking the steepest ascent in condo prices in 2023 are chiefly those with restrained launch events the previous year. These trends, though significant, are derived from relatively modest data sets.


Historical Investor Returns - Select East Toronto Projects

Comparative Analysis: New Condo Launch Prices vs. Resale Prices in East Toronto & Scarborough (2022-2023)

Bullpen Consulting delved into the pricing data of new condo launches in East Toronto and Scarborough. They then juxtaposed these figures against the average resale prices spanning September 2022 through August 2023.

From the data visualization provided, it’s evident that the five high-rise projects in Scarborough experienced an uptrend in pricing. The average surge? An impressive just-shy-of 80% from their launch, translating to an 11% annual return.

Diving deeper, our analysis extended to 16 mid-rise ventures. The insights? These projects have appreciated by an average of 73% since their launch, clocking in a commendable average annual growth rate of 9%.


Average Rent at GTA Buildings Completed since 2014

GTA’s Rent Trends in 2023: Delving into Condominium & Apartment Rates

Taking a detailed look at condominiums and rental apartments in the GTA that have been completed in the past decade, we noticed some interesting trends in the rental landscape:

  • For Q3-2023 (accounting for July and August only), the average rent stood at $3,184. This data, derived from a curated selection of listings, presents a 3% growth when compared to the previous $3,085 monthly rent in Q4-2022.

  • On a per-square-foot scale, properties under 10 years of age are fetching around $4.43 psf in Q3-2023, marking a 5% hike from $4.20 psf in Q4-2022.

It’s crucial to highlight a subtle shift in property sizes that impacts these metrics. The average unit size has seen a decline, moving from 735 sf to 719 sf, leading to a hike in per-square-foot rental rates. To paint a clearer picture, the median unit size in Q4-2022 was 702 sf, while it contracted to 669 sf in Q3-2023.


Average Rent at Recently Completed PBR Buildings in the GTA

Q3-2023 Rent Insights: Spotlight on ‘Recent’ Purpose-Built Rental Apartments in GTA

Highlighting 20 high-demand rental buildings completed within the past decade, we unearthed some significant rental trends:

  • In Q2-2023, these prime properties asked for an average rental rate of $4.16 psf. Fast forward to Q3-2023, and the rate edged up to $4.37 psf.

Making waves in the newest developments is “Maple House at Canary Landing.” Starting its leasing program, this modern establishment commands a noteworthy rental ask of roughly $4.75 psf.

Condo Launch Prices versus 2023 Rent Levels - New Completions

2023 Insights: Comparing Condo Launch Prices to Average Rents Per Square Foot in Southwestern Ontario

For condominium apartments completed in 2023 across southwestern Ontario, a striking rental pattern emerges:

  • The typical rent asked for these condos averages at $3.89 psf, juxtaposed against an average launch price standing at $805 psf. This rent translates to 0.48% of the condo’s initial launch price, shedding light on the rent-to-price ratio.

Digging deeper:

  • Gaslight District Condos in Cambridge leads the charge with the highest rent-to-price ratio of 0.73%.
  • In contrast, Rodeo Drive Condos situated within the Shoppes at Don Mills development in North York claims a 71% ratio. It’s noteworthy that this metric for Rodeo Drive has been shaped by the extensive 7+ year interval from its launch to eventual occupancy.

It’s evident that markets like Cambridge offer enticing “rent value” for those eyeing more budget-friendly locales. On the other hand, the rent value trajectory at Rodeo Drive can be attributed to its prolonged timeline to occupancy.

For expert advice, please don’t hesitate to contact me.

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