TORONTO – Condominium prices across the Greater Toronto Area (GTA) continue their meteoric rise, soaring by double-digit percentages over the last year.
According to the Toronto Regional Real Estate Board, the benchmark price for a GTA condo apartment jumped 15.7% year-over-year in June 2022 to $705,400. Condo townhouses saw an even more dramatic increase of 31.4% to $900,100.
This surging demand is outpacing supply, as condo listings plunge. Active listings for condo apartments cratered by 55% compared to last year.
Industry observers cite several factors driving the condo frenzy:
Strong population growth and urbanization
Young professionals and immigrants flocking to the GTA
Remote work allowing more flexibility to live downtown
Rising mortgage rates pricing some buyers out of low-rise homes
But some economists warn the condo segment could be approaching bubble territory.
“Prices are disconnecting from fundamentals like incomes and rents,” said Benjamin Tal, deputy chief economist with CIBC. “A correction could be coming if demand softens and investor speculation eases.”
For now, the condo boom continues, defying those who predicted the pandemic would dampen demand for dense urban housing. Savvy investors are scrambling to capitalize on record-low listings before the market shifts.
But industry watchers caution the hysteria could be short-lived, and avoiding overbidding is key. The coming year will test whether the sky-high condo market is built on a solid foundation.