Ontario Construction News staff writer
Townhouse sales in the Greater Toronto and Hamilton Area (GTHA) remained strong in 2024, with 3,255 units sold, holding steady compared to 2023, according to a report from Zonda Urban. Demand for ground-related townhouses surged in the fourth quarter, reaching a two-year high with 1,043 sales, and these homes accounted for 60% of total sales in the latter half of the year.
In contrast, 2024 marked the third consecutive year of significant declines in multi-family sales, with condominium and apartment sales dropping 49% to 7,649 units, compared to 2023.
“The difference in demand between townhouses and apartments is striking,” said Pauline Lierman, Zonda Urban’s vice president of market research. “Developers of townhouse projects are optimistic, with many seeing their developments sell out quickly. Meanwhile, condo apartments are still facing a large backlog of unsold inventory.”
The average price of a new condominium apartment in Q4 2024 was $1,141 per square foot, totaling around $783,535 for a 689-square-foot unit, unchanged from the same period in 2023. On the other hand, the average price for a townhouse dropped 3% year-over-year to $1,135,191 (for 1,674 square feet), due to more compact units entering the market.
In 2024, 21 new condominium apartment projects (6,587 units) were launched, the lowest number in over 15 years, while 54 new townhouse projects also debuted.
Zonda Urban predicts that the large number of apartment units set to complete in early 2025 will hinder any significant market rebound in the first half of the year. Additionally, the number of cancelled units surged in 2024, reaching the highest level since 2018, with 3,461 units removed from the market across eight buildings.
