GTHA townhouses have best quarter in 2 years as apartment sales halt
In stark contrast: Greater Toronto and Hamilton condo apartments VS townhouses
TORONTO, Jan. 23, 2025 /CNW/ -- Zonda Urban reported today that townhouse sales were resilient, accounting for their largest share of annual volume in over a decade at 43 per cent, in its 2024 Greater Toronto and Hamilton Area (GTHA) report.
- Some 3,255 townhouses were sold in the GTHA in 2024, relatively even with 2023 volume.
- Demand for ground-related townhouses reached a two-year high in the fourth quarter at 1,043 sales and made up 60 per cent of sales in the second half of the year.
Meanwhile, 2024 marked the third year of successive double-digit declines in annual multi-family sales in the GTHA with 7,649 condominium and apartment sales 49 per cent lower than 2023.
"The contrast in demand between the two market sectors, apartment and townhouses, could not have been more stark," says Pauline Lierman, Zonda Urban's vice president, market research. "Developers with townhouse product showed optimism with several projects selling out shortly after at launch. Meanwhile, those on the condo apartment side still have high unsold inventory."
- The average new condominium apartment sold for $1,141/square foot as of Q4-2024 (average $783,535 for 689 square feet) unchanged from Q4-2023.
- While the average townhouse price at $1,135,191 (1,674 square feet) was down 3 per cent year-over-year as smaller product came to the market.
Any new apartment developments launched had to be priced competitively and in relation to the resale market, which only resulted in a small sales gain compared to the summer months.
- 21 new condominium apartment projects opened for sales in 2024 (6,587 units — lowest in over 15 years)
- Just 19 per cent were sold at opening, sliding from an absorption rate of 38 per cent in 2023 and 63 per cent in 2022
- 54 townhouse projects opened for sales in 2024 (2,436 units)
- 58 per cent were sold at opening, up from an absorption rate of 55 per cent in 2023
Zonda Urban expects the high level of completing apartment units will impede a market resurgence during the first half of 2025. Cancelled units reached their highest point in 2024 since 2018 with 3,461 units pulled from the market in 8 buildings.
The full Q4-2024 Zonda Urban GTHA multi-family take will be released soon. (Related: Ottawa new housing grows by 75 per cent, dominated by townhouses)
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Zonda provides data-driven housing market solutions to the homebuilding industry. From builders to building product manufacturers, mortgage clients, and multifamily executives, we work hand-in-hand with our customers to streamline access to housing data to empower smarter decisions. As a leading brand in residential construction, our mission is to advance the home building industry, because we believe better homes mean better lives and stronger communities. Together, we are building the future of housing.
SOURCE Zonda