GTA Apartment and Redevelopment News

By: Alexander Silver

Welcome to another installment of the Apartment & Redevelopment Newsletter, designed to bring you local relevant information about what’s happening in the Greater Toronto Area (GTA) Apartment and Land property market. We bring this to you on a monthly basis to assist Property owners in keeping up to date with industry news, recent transactions and development applications.
In September 2022 there were 12 transaction’s in GTA Apartments, for a value of $144,097,486. This is down
approximately 75% in aggregate value compared to September 2021 when there were also 12 transactions for a total value of $575,690,000. There were 387 units traded in September 2022 vs 1306 units traded in September 2021.
The long-term outlook for the multifamily market remains positive and liquidity has made the sector resilient in the face of economic shifts

Market rents have risen significantly with the average rent in
Toronto up 17.1% YoY for a one-bedroom unit and up 24.3%
for a two-bedroom unit.
The average price per suite in the GTA has risen to $351,812 year-to-date, which represents an increase of 7.2% YoY.
The construction of new purpose-built rentals has nearly come to a halt with only two rental projects (totaling 314 units) starting construction over the last two quarters.

Every month we will highlight new sales, development applications and industry news.

Bank of Canada Raises Interest Rates (again) As expected, today the Bank of Canada raised the overnight rate for the sixth time this year, to 3.75%. What was not expected was the 0.5% increase – the economist consensus was 0.75% and some even suggested more was possible in the face of continuing inflation.
This is being described as a ”pivot” – we don’t necessarily see it that way. Rising slightly less than expected is far different from no raise, or a rate cut. The focus is still on inflation, and the language of the Bank left the door open for further increases: the ”governing council expects that the policy interest rates will need to rise further.”

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While there was concern over the currency, so far we have not seen a significant movement in the CAD relative to the USD.
Rates are now at a 14 year high – the last time the overnight rates was over 3.5% was February 2008.
The tightening of credit is starting to impact the residential market, with some smaller markets such as Kitchener and Barrie down >10% in the past 6 months per CREA.
Canada’s rates are now the highest in the developed world, well above the EU, Japan, England and Australia (see chart below)

20 Elizabeth Street North
Mississauga
Sale Date: October 19, 2022
Price: $19,100,000
Number of Units: 68
Year Built: 1971
Price per Unit: $280,882

44 Balliol Street
Etobicoke
Sale Date: October 18, 2022
Price: $11,000,000
Number of Units: 30
Year Built: 1957
Price per Unit: $366,667

2128 Harris Crescent
Burlington
Sale Date: September 29, 2022
Price: $3,740,000
Number of Units: 11
Year Built: N/A
Price per Unit: $340,000

65 Dundas Street East
Toronto
Sale Date: September 12, 2022
Price: $94,000,000
Number of Units: 280
Year Built: N/A
Price per Unit: $335,714

356 Walmer Road
Toronto
Sale Date: September 1, 2022
Price: $3,600,000
Number of Units: 8
Year Built: 1936
Price per Unit: $450,000

5-15 Jansusie Road
Etobicoke
Sale Date: August 29, 2022
Price: $25,500,000
Number of Units: 90
Year Built: 1967
Price per Unit: $283,333