Despite the average price of a condo unit in Toronto increasing by almost 8% year-to-date to reach $551,761, this has not stopped hopeful home owners from snapping up the city’s condominium apartments.
According to the latest report by RE/MAX of Ontario-Atlantic Canada Region, this price point is still well within the affordability bracket of a large proportion of would-be home buyers, even when compared to the $512,552 average during the January-October period last year.
Indeed, the demand is spurring on even greater vertical growth. The market share of resale condos (along with townhouses) in the GTA now accounts for almost 37% of total residential activity recorded by the Toronto Real Estate Board’s MLS.
“The condominium lifestyle continues to resonate with buyers in the Greater Toronto Area for a number of reasons. While the affordability aspect is first and foremost, we’ve also a seen strong investor presence in recent years,” RE/MAX of Ontario-Atlantic Canada Region executive VP and regional director Christopher Alexander said.
The downtown core saw the greatest number of sales, representing 21.9% of all condo sales.
“In spite of a proliferation of condominium developments over the past decade, supply and demand issues continue to persist in the core,” Alexander explained. “Limited inventory continues to place substantial upward pressure on prices, with fewer affordable housing options available—and that includes condominium rentals.”
RE/MAX attributed the surging demand to healthy immigration and population growth numbers, along with a growing preference for work-to-home accessibility via major thoroughfares.