Marina Homes

2021: A Record-Breaking Year for Mississauga Condo Construction

Introduction: The dynamic Toronto real estate market

The Toronto real estate market has always been known for its dynamism – and the numbers are there to prove it. 


In a record-breaking quarter for 2021, an estimated 7,800 new pre-construction condos were sold – sending shockwaves through the industry and signaling that the city’s housing demand remains strong. 

But what exactly is driving this impressive surge in pre-construction condo sales? Let’s dive into the factors that have contributed to this remarkable phenomenon. 

Unwavering Demand: 

Despite the challenges posed by the global pandemic in the previous years, Toronto’s housing market has remained resilient. The demand for housing, particularly condos, has not moved even a bit. Buyers are still keen on securing their piece of the Toronto dream – whether for personal or investment purposes. 

Low Inventory: 

The limited availability of resale condos and the inventory of single-family homes have prompted a lot of buyers to explore pre-construction options. With more pre-construction projects hitting the market, buyers now have many choices to meet their housing needs. 

Investment Potential: 

Pre-construction condos in Toronto have long been seen as attractive investment opportunities – with the city’s ever-growing population and strong rental demand. Investors view condos as a reliable income-generating asset – and the potential for asset appreciation remains high. 

Low-Interest Rates:

Low interest rates have made homeownership more accessible for many people – further fueling demand for pre-construction condos. Buyers now use these favorable financial conditions to secure their future properties. 

Lifestyle Preferences: 

The desire for urban living continues to draw individuals and families to the GTA, and pre-construction condos offer modern living spaces and proximity to urban conveniences such as amenities, entertainment, and employment opportunities. 

Increase in demand during the Pandemic:

Amidst the pandemic’s challenges, the Greater Toronto Area (GTA) witnessed a remarkable year-over-year surge in new condo sales during the third quarter (around 22%), setting an all-time high. Two years later, confidence in the Toronto condo market grew stronger for investors. 

Year-to-date stats in the GTA:

According to Team Aurora, a real estate organization in Canada, year-to-date statistics for new condo sales in the GTA show a substantial increase, with 22,107 units sold, marking a significant 63% surge compared to the same period in 2020, when 13,589 units were sold. 

Beyond the borders of Toronto, which accounted for 2003 sales, other GTA municipalities also contributed to the third-quarter condominium sales. These included Mississauga, North York, Vaughan, Scarborough, and Oakville. 

The impact on pricing:

With demand strengthening and the available supply diminishing, the prices of remaining new condominiums in the GTA experienced a 10% year-over-year increase, reaching a historic high of $1231 per square foot (PSF). 


This surge in sales activity and pricing underscores the enduring confidence of investors and buyers in the Toronto Condo market. As the GTA thrives, it remains an attractive destination for real estate investments and urban living, demonstrating resilience despite unpredictable challenges. 

Transitioning into a more active second quarter for GTA:

Most of the condo inventory is in the preconstruction and early construction phases, which means there is pressure on trades – and this amounts to an increase in construction costs, leading to higher prices for buyers. 


According to Shaun Hildebrand, President of Urbanation – a leading source of information on the GTA condo market – the growth trajectory of condo prices is shifting, with a noticeable slowdown compared to the rapid appreciation observed in the past few years. 


Several factors have contributed to this phenomenon, including unwavering demand from buyers, low inventory of resale condos, the appeal of investment potential, low interest rates, and the preference for urban living.


The impact on pricing has been significant, with prices for new condominiums in the GTA experiencing a substantial 10% year-over-year increase, reaching historic highs. This trend underscores the enduring confidence of investors and buyers in the Toronto condo market.

THE BOTTOM LINE

In conclusion, the Toronto real estate market has recently demonstrated remarkable resilience and dynamism, setting new records and weathering challenges. The surge in pre-construction condo sales, including the record-breaking 7,800 units sold in 2021, reflects the city’s enduring housing demand. 


Additionally, the GTA condo market has shown consistent growth, with an impressive year-over-year increase in new condominium sales, marking the second-highest level on record. Municipalities beyond Toronto’s city limits, such as Mississauga, North York, Vaughan, Scarborough, and Oakville, have contributed significantly to this growth.