Shocking Truth of Toronto Condos

If you’re planning to buy or sell a condo in Toronto you must read this Article. This is another ugly truth about the condo market in Toronto right now. We’ll talk about the condos that are selling and condos that are NOT selling.

Let’s look at the numbers and go through them in 2 fast simple steps:

Step number 1, what’s out there: 

There are currently 7,312 condos on the market in Toronto. Seems a lot, right? Wait, it gets better. Out of those, There are 2,969 condos available in downtown Toronto.

So here where it’s getting meaningful, let’s check the occupancy status of these condos.

Occupancy Status:

Tenanted Units:

Tenanted units in Toronto are 1,564 condos (21.38% of the total condos on the market).

Tenanted units in Downtown Toronto are: 791 condos (26.64% of the total downtown condos on the market).

Vacant Units:

In Toronto there are 3,337 Vacant condos right now on the market (45.64% of the total condos on the market).

In Downtown Toronto on the other hand there are 1,368 vacant condos on the market right now (46.08% of the total downtown condos on the market).

Step number 2: What is selling?

Now we’re gonna look at the Sold Condos in the Past 30 Days:

In the city of Toronto 1,033 condos have been sold, representing 14.2% of the total condos on the market.

In Downtown Toronto only 324 condos have been sold, representing 11% of the total condos on the market downtown. So that means in downtown 1 out of 9 condos right now, has a chance to get sold within 30 days!

Here is where it gets more interesting:

I’m gonna tell you the Sold Condos by Occupancy Status:

In the city of TORONTO owner occupied or vacant condos sold were 947 condos (91.67% of sold condos).

In DOWNTOWN TORONTO owner occupied or vacant condos  sold were: 288 condos (88.89% of sold condos).

Subsequently, the number of tenanted properties that were sold in the City of Toronto were 86, and out of that 86 condos, 36 were in downtown Toronto. So while the majority of sales are happening in the owner occupied condos or vacant condos, the tenanted condos are being hit the hardest as they look less desirable to COndo buyers. Look at this percentage:

Out of all the tenanted condos on the market , only 86 were sold in the past 30 days in the city of Toronto, which is 5.5% of the tenant occupied condos. In the downtown that percentage is 4.8%. That basically shows you that approximately 5% of the tenant occupied condos were sold in the past 30 days.

As you saw, The sold condos’ occupancy data shows that a majority of the sold units are vacant, which might appeal to buyers looking for immediate occupancy or investment opportunities.

The high percentage of non-tenanted condos (91.67% in the GTA and 88.89% in downtown) suggests that vacant units are in higher demand, possibly due to ease of transaction and immediate availability, which is desirable for both first time buyers and end users, and especially investors.

So what’s in it for buyers and sellers:

Buyers: 

The current market conditions favor buyers by a lot, given the high number of units on the market right now. Additionally, the lower percentage of tenanted units in the GTA might offer more flexibility in terms of price negotiations. So if you’re an end user, you might find good price negotiation opportunities in tenanted units. Taking possession of tenanted units also can become a bit more complicated, so there are things to take into consideration before signing an agreement to purchase a tenanted unit which is beyond this video and I’ll go through them in another video.

Sellers: 

Sellers, especially in downtown Toronto, should be aware of the competitive market environment. Pricing strategies and marketing need to be very very aggressive to attract buyers in these high inventory levels.

Conclusion

In the current market, there are 7,312 condos available in Toronto, with 2,969 located in downtown Toronto. Understanding the occupancy status is crucial for making informed decisions. Tenanted units represent 21.38% of the total condos on the market, with vacant units making up 45.64%.

Over the past 30 days, 1,033 condos have been sold in Toronto, which is 14.2% of the total market. In downtown Toronto, only 324 condos have sold, making up 11% of the market. The data reveals that the majority of sold condos are either owner-occupied or vacant, indicating a preference for immediate occupancy or investment opportunities among buyers. Only 5.5% of tenant-occupied condos were sold in Toronto, and 4.8% in downtown, highlighting the challenges in selling these units.

What This Means for Buyers and Sellers

Buyers: The current market conditions favor buyers significantly, given the high inventory of available units. The lower percentage of tenanted units may offer more price negotiation opportunities. However, buyers should consider the complexities of purchasing tenanted units before making a decision.

Sellers: Sellers, particularly in downtown Toronto, need to be aware of the competitive environment. Pricing and marketing strategies must be aggressive to attract buyers in this high-inventory market.

If you’re looking for expert guidance on navigating the Toronto condo market, whether you’re buying or selling, contact us today. Our experienced Toronto real estate agents are here to help you make informed decisions and achieve your real estate goals.

Read more: The Best Condos in Toronto