New condo sales in the Greater Toronto and Hamilton Area are plummeting, down 81% in the third quarter of 2024 compared to the same time last year, according to a new report from Urbanation.
The report, released on Friday, reveals that only 567 new condo units were sold in the GTA and Hamilton during this quarter, marking the lowest quarterly sales since 1995. This figure also reflects an 87% drop from the 10-year average for third-quarter sales in the region.
So far this year, only 3,641 condos have been sold, which is a 63% decline compared to last year, putting the GTHA new condo market on track for its slowest year since 1996.
“The new condo market is facing its toughest challenges in decades,” said Shaun Hildebrand, president of Urbanation, in a news release. “Investors are inactive, and end-users have many affordable resale options available.”
The report also highlights that among the new condo projects launched for presale, three projects with 1,111 units were switched to purpose-built rental units, while another eight projects, totaling 2,231 units, were either paused, canceled, or placed into receivership in the third quarter.
In the past two years, 33 condo projects totaling 6,796 units that were actively selling have been either converted to rentals, put on hold, canceled, or gone into receivership.
During the third quarter, there were 2,163 new condos that started construction, which is a 13% decrease year-over-year, making it the slowest third quarter for starts in over a decade.
This year, there have been 7,200 new condo starts in the region, representing a 53% drop compared to the same time last year and a 73% decline from 2022.
The report states that there were 88,967 new condominiums under construction across the GTHA in Q3 2024, the lowest figure in over three years.
On a brighter note, condo completions are expected to total 24,386 units this year, slightly up from last year’s 24,114 completions. It’s projected that completions will reach a record high of 29,409 in 2025 before declining again.
Hildebrand believes that although recovery may take some time, the new condo market will eventually bounce back as developers limit supply, construction inventory decreases, and demand rises with falling interest rates.
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