New Condo Sales in GTHA Drop 64% in 2024: Toughest Year in Three Decades

New condo sales in the Greater Toronto and Hamilton Area (GTHA) saw a 64% decline in 2024, marking the lowest figures since 1996. This decline, reported by Urbanation Inc., highlights the third consecutive year of falling sales in the region.

In total, 4,590 units were sold in 2024, a sharp contrast to the 12,696 sales in 2023. When compared to the 10-year average of 20,835 units, the sales slump becomes even more pronounced at a 78% decrease.

Limited Project Launches and Sluggish Sales

The fourth quarter of 2024 saw just six projects introduced, totaling 1,829 units. However, only 10% of these units were sold. Historically, fourth-quarter launches average 6,123 units with a 52% sales rate. 

Lower prices, averaging $1,130 per square foot, failed to significantly boost demand. This is the lowest price level for new launches since mid-2021.

Unsold Inventory Reaches Record Levels

The total number of unsold units in the development pipeline, including pre-construction, under construction, and newly completed projects, hit a record high of 24,277 units by the end of 2024. At the current sales rate, clearing this inventory would take 64 months, a stark contrast to the balanced inventory level of 10-12 months.

Rising Completions Amid Declining Starts

Despite falling sales, completions reached an all-time high of 29,800 units in 2024, surpassing the previous record of 24,117 units in 2023. Urbanation projects another record for 2025, with 30,793 units expected to finish construction. 

However, the construction of new units has slowed dramatically. Only 9,258 units began construction in 2024, the lowest number since 2002 and a 51% drop compared to 2023.

Challenges in the Market

Shaun Hildebrand, President of Urbanation, attributed the downturn to multiple factors, including investor challenges. Negative cash flow, financing difficulties, and declining rents and prices have dampened presale activity. This slowdown could significantly reduce new supply by 2026-2027.

The resale market in Toronto has shown minor improvement, driven by lower interest rates and changes to lending rules. However, experts predict a continued softness in condo prices throughout 2025, with Royal LePage forecasting a 1% decline in Toronto condo prices by year-end.

Key Takeaways

• 2024 marked the toughest year for the GTHA condo market in 30 years.
• New condo sales fell significantly, while unsold inventory and completions hit record highs.
• The market faces persistent challenges, with slow recovery expected in the near term.

As the market navigates these uncertainties, buyers, investors, and developers alike are bracing for what lies ahead.

More…

• https://www.cp24.com/local/toronto/2025/01/16/toughest-year-in-three-decades-new-condo-sales-in-gtha-saw-steep-decline-in-2024
• https://www.thestar.com/business/toronto-and-hamilton-area-new-condo-sales-plummet-to-their-lowest-level-in-nearly-thirty/article_a3ea954a-d386-11ef-a15a-47ff596944ec.html
• https://e.vnexpress.net/news/business/property/condo-sales-in-canada-s-biggest-city-plummet-to-28-year-low-4840456.html