Last year was the slowest year for new condo sales in Toronto in nearly 30 years, according to a new market analysis.
The slump is leading to lowered expectations for the market as investors deal with challenges that are impacting presale activity and could slow construction starts.
Urbanation Inc., which has been providing information and analysis on the condominium market since 1981, released its year-end 2024 condominium market report on Thursday.
According to its new condominium apartment market survey for the Greater Toronto and Hamilton area (GTHA), there were a total of 4,590 sales in 2024.
That's a 64 per cent drop from 2023, when there were 12,696 sales, compared to the latest 10-year average of 20,835 sales.
Last year was the slowest year for new condo sales in the GTHA since 1996, Urbanation says.
Low expectations
“The new condo market just experienced its toughest year in three decades," Shaun Hildebrand, president of Urbanation said in a news release.
"Expectations for the market remain low this year as investors, the primary driver of presale activity, continue to deal with negative cash flow, difficulties arranging financing and declining prices and rents," Hildebrand said.
"The drop in presale activity will continue to cripple construction starts in 2025, causing a massive decrease in new supply beginning in 2026-2027,” he added.
Six projects totalling 1,829 units launched for presale during the fourth quarter of 2024, of which only 10 per cent of units sold, Urbanation noted.
Sales at new project launches were also limited despite lower prices offered.
Urbanation said at the 2024 level of sales, it would take 64 months to clear current unsold inventory, a record high nearly six times higher than a balanced level of inventory at 10 to 12 months of supply.
Meanwhile, condo completions are set for another record high in 2025 with 30,793 units scheduled to finish construction.
