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Apartment & Redevelopment Newsletter

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Volume 10| February 2023

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 February 2023 there were only 2 transaction’s in GTA Apartments, for a value of $14,200,000. This is down approximately 92% in aggregate value compared to February 2022 when there were 25 transactions for a total value of $469,301,000. There were 50 units traded in February 2023 vs 1195 units traded in February 2022. Transaction spend is down 97% YoY with 96% decrease in units transacted.

Last week, the US Federal Reserve announced an increase of interest rates by 0.25% from 4.75% to 5%. It’s the 9th straight meeting of raised rates in an effort to rapidly reduce liquidity to the financial markets and tamp down high inflation. Canada does not always follow suit, however there are many synergies between economies to take into account when the BoC makes its own decision.

A key difference between the two economies, is the weight of the housing market on overall GDP — between 8 – 10% in Canada, compared to just 5% in the US — plus heftier debt loads being carried by Canadians; the national debt-to-income ratio here is 180%, double that of our American counterparts.