Usually, when speaking about the GTA real estate market, people think of bidding wars and bully offers on single, detached family homes. But the recently released Q3 TREB report on the condo and rental market paints a different picture.
Even though cranes working on condo sites are a common part of all of the GTA’s communities’ skylines, new condo listings are actually down from Q3 a year ago, by 13%. Sales, in the same time period, however, were up by a surprising 22%, with the average price reaching $415,000 – an increase by 9.6% compared to Q3 last year. “The annual rate of condominium apartment price growth has accelerated over the past year as the supply of units available for sale became more constrained while demand remained strong,” says Jason Mercer, TREB’s director of market analysis in the report. “With this said, however, annual rates of price growth remain well-below those for low-rise home types.”
Tied to this development is the effect on the condo rental market, where rents continue to rise. Especially one-bedroom and two-bedroom units seem to be attracting a lot of attention, and with it, increased rents. The average one-bedroom condo rental unit now stands at $1,777, where a two-bedroom unit goes for $2,419 on average. There is speculation that the rise in rents can be, in some part at least, attributed to the rise in popularity of sites such as AirBnB, where owners can rent out units on a daily, weekly or monthly basis.
Links to the reports: