Canada Condominiums and Apartments Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 8.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Canada Condominiums and Apartments Market Analysis
The Canada Condominiums and Apartments Market is currently valued at around USD 100 billion and is anticipated to register a CAGR of more than 8% during the forecast period. The rising demand for affordable housing is driving the market. Furthermore, the market is propelled by first-time buyers looking for different types of properties in the country.
- Condominium market share increased in major urban areas across the country this year, reflecting new market realities and the changing path of entry-level buyers. Condominium sales fell in four markets in the first eight months of 2022: Greater Vancouver/Fraser Valley, Greater Toronto, Ottawa, and Nova Scotia, while Calgary and Edmonton saw double-digit sales increases over the same period in 2021. Condo values are up year over year in almost all markets, with many boosted by a strong first quarter of 2022. The key issue in today's housing market is affordability. Rising interest rates gradually eroded purchasing power, and despite lower housing values and cooling market conditions, purchasing a home is now more difficult than ever.
- Given sharp double-digit increases in rental rates across the major markets, particularly in BC and Ontario, the cost of carrying a mortgage versus renting is now more comparable for those who adjusted expectations with each rate hike. As a result, while there were fewer sales in 2022, condominiums accounted for a higher proportion of total sales, as buyers sought more affordable options to achieve home ownership. In most major urban areas, condominium prices remained stable or increased yearly. Overall, conditions are balanced, so buyers and sellers with realistic expectations should be able to meet their goals. Buyers can take a breather in Canada's active condominium market for the most part, as the heated momentum of recent years cooled with inflationary pressures, shifting conditions into more balanced territory. This equilibrium created a once-in-a-lifetime opportunity for those willing and able to act. It ranges from first-time buyers looking to establish a foothold in the market to move-up buyers and empty nesters. It is being seen all over the place.
- Condominiums in suburban areas are the most popular among today's buyers. Over the last eight months, areas such as Saddle Ridge, Panorama Hills, Currie Barracks, and McKenzie Town saw strong demand, with condominium apartment sales doubling year on year. Saddle Ridge, Panorama Hills, Currie Barracks, Garrison Woods, and Killarney/Glengary increased double-digit values. However, as people continued to work from home, the demand for condominium apartments in the city's downtown core remained lukewarm. It changed in the following months as more people returned to work in the downtown core. Out-of-province buyers from British Columbia and Ontario continued to pour into Calgary and invest in the city's housing stock.
- While buyers are aware of the Bank of Canada's interest rate increase, they are also acutely aware of market conditions changing. The transition from a seller's market to a more balanced environment gave many buyers plenty of breathing room. It is at a time when there is a good selection of condominium products available in various price points and neighborhoods, sellers are more willing to negotiate, and overall market conditions are favorable. Three months' worth of inventory is currently available for sale, and sellers discovered that days on the market are increasing. Most buyers believe the worst is over, and with some minor adjustments on the way, volatility should be kept to a minimum.
Canada Condominiums and Apartments Market Trends
Increased demand for affordable housing driving the market
Some Greater Vancouver and Fraser Valley communities fared better than others regarding condominium sales. Coquitlam, for example, fell just 12.8% short of 2021's record pace, with just under 1,000 sales in the first eight months of 2022, compared to 1,146 in the same period in 2021. Vancouver West fared well against the changing tide, registering a 12.4% year-over-year decline, with 3,211 sales in 2022 compared to 3,666 sales in 2021. Surrey North in the Fraser Valley also remained relatively strong, with sales falling 11.7% from 2021's record pace. Between January and August, just over 1,100 apartments were sold, a 155-sale decrease from the 1,255 sales recorded in 2021.
Buyers continue to be patient, waiting for the right listing to appear. The tri-city area of Port Moody, Port Coquitlam, and Coquitlam is a popular destination. There are opportunities in markets like New Westminster, where apartments offer good value for money and a more central location. Those looking for affordability and a good lifestyle are drawn to Vancouver East, particularly Commercial, Main, and Mount Pleasant communities, where new trendy restaurants and shops are springing up. The median price in the area is USD 675,000, up 8% from 2021. Sales in Vancouver West are also holding steady, down only 12% year on year, with over 3,200 sales reported between January and August 2022, compared to 3,666 during the same period in 2021.
In recent years, rising interest rates and the affordability factor contributed to the popularity of the condominium lifestyle. Condominiums account for nearly one in every five properties sold in Calgary. With each announcement of a hike in the overnight rate by the Bank of Canada, entry-level buyers re-evaluated and re-adjusted to new market realities. The rapid rise in rental rates also prompted would-be renters to consider home ownership, with the monthly rate for a one-bedroom apartment in Calgary rising to USD 1,597 (+29.8% year on year) and a two-bedroom apartment now sitting at USD 1,891 (+19.7% year on year).
First-time Buyers are Supplementing the Demand for Condominium across the Country
Prices for new condominium apartments in Vancouver increased the most (+4.2%) in Q1 2022, owing to declining inventories and continued demand for this type of dwelling. Condominium apartments, as opposed to single-family homes, remained relatively affordable for first-time home buyers and investors looking to enter a hot rental market. According to Rentals.ca, Vancouver had the highest year-over-year average rent increase (+29.9%) in March. Higher rents attracted investors to this city, reducing the supply of available units and contributing to price pressures for these new condominium apartments.
According to the Canada Mortgage and Housing Corporation, the inventory of under-construction condominium apartments decreased by 4.7% in the first quarter of 2022 compared to the fourth quarter of 2021. It was the third quarter in a row that inventories fell. While supply remained low, demand for housing increased, owing to many in-migrants moving into British Columbia over the past year. In the first and second quarters of 2021, interprovincial net migration reached levels not seen since 1994. Prices for new condominium apartments increased in Toronto (+1.4%) and Victoria (+1.3%). The Building Industry and Land Development Association reported low condominium apartment inventories in Toronto, as well as an increase in sales in January and February 2022.
Canada Condominiums and Apartments Industry Overview
The Canada Condominiums and apartments market is fragmented with many local, regional, and global players. The major players include Onni Group, Concert Properties Ltd, The Minto Group, Aquilini Development, Bosa Properties, and many more. The rising demand for these properties allowed real estate developers to invest. The services in financing the properties and increasing affordability can create a difference among the players.
Canada Condominiums and Apartments Market Leaders
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Onni Group
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Concert Properties Ltd
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The Minto Group
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Aquilini Development
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Bosa Properties
*Disclaimer: Major Players sorted in no particular order
Canada Condominiums and Apartments Market News
- December 2022: The Equiton Residential Income Fund Trust (The Apartment Fund) acquired a multi-family residential property in Toronto, Ontario. The property was purchased for USD 50 million. The Ravine Park Apartments will include seven stories, 169 units, and 183 combined indoor and outdoor parking spaces. It's close to public transportation, directly across the street from the upcoming Eglinton LRT Ionview Station, within walking distance of the Kennedy Subway and GO stations, and various amenities.
- October 2022: Rentsync and Urbanation collaborated to create a comprehensive market data platform for rental housing properties in Canada. The two companies were discussing a partnership for over a year. Urbanation and Rentsync will publish monthly reports that aggregate and analyze rental data across all market segments. They will include data-driven information on overall rents, rents by unit type, rents per sq ft, availability, turnover rates, and more.
Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Method
- 2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS DYNAMICS
- 4.1 Current Market Scenario
- 4.2 Market Overview
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4.3 Market Dynamics
- 4.3.1 Drivers
- 4.3.2 Restraints
- 4.3.3 Opportunities
- 4.4 Value Chain / Supply Chain Analysis
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4.5 Industry Attractiveness - Porter's Five Forces Analysis
- 4.5.1 Bargaining Power of Suppliers
- 4.5.2 Bargaining Power of Buyers/Consumers
- 4.5.3 Threat of New Entrants
- 4.5.4 Threat of Substitute Products
- 4.5.5 Intensity of Competitive Rivalry
- 4.6 Current Economic Scenario and Consumer Sentiment
- 4.7 Residential Real Estate Buying Trends - Socioeconomic and Demographic Insights
- 4.8 Government Initiatives and Regulatory Aspects for the Residential Real Estate Sector
- 4.9 Insights into Size of Real Estate Lending and Loan to Value Trends
- 4.10 Insights into Interest Rate Regime for General Economy and Real Estate Lending
- 4.11 Insights into Rental Yields in the Residential Real Estate Segment
- 4.12 Insights into Capital Market Penetration and REIT Presence in Residential Real Estate
- 4.13 Insights into Affordable Housing Support Provided by Government and Public-private Partnerships
- 4.14 Insights into Real Estate Technology and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)
- 4.15 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By City
- 5.1.1 Toronto
- 5.1.2 Montreal
- 5.1.3 Vancouver
- 5.1.4 Ottawa
- 5.1.5 Cagalry
- 5.1.6 Hamilton
- 5.1.7 Other Cities
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 Onni Group
- 6.2.2 Concert Properties Ltd
- 6.2.3 The Minto Group
- 6.2.4 Aquilini Development
- 6.2.5 Bosa Properties
- 6.2.6 Amacon
- 6.2.7 Shato Holdings Ltd
- 6.2.8 B.C. Investment Management Corp.
- 6.2.9 Brookfield Asset Management
- 6.2.10 Polygon Realty Limited
- 6.2.11 The Daniels Corporation
- 6.2.12 Tridel
- 6.2.13 Slavens & Associates
- 6.2.14 Living Realty*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
Canada Condominiums and Apartments Industry Segmentation
An apartment is a private residence in a building or house divided into several separate dwellings. A condominium (or a "condo") is a large property complex comprising individual units owned separately. Typically, ownership includes a nonexclusive interest in certain "community property" managed by the condominium management. The report covers a complete background analysis of the Canada Condominiums and Apartments Market. It includes the assessment of the economy and the contribution of sectors in the economy, market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics and geographical trends, and COVID-19 impact.
The Canada Condominiums and Apartments Market is segmented by city (Toronto, Montreal, Vancouver, Ottawa, Calgary, Hamilton, and other cities). The report offers market size and forecasts in value (USD billion) for all the above segments.
| By City | Toronto |
| Montreal | |
| Vancouver | |
| Ottawa | |
| Cagalry | |
| Hamilton | |
| Other Cities |
Frequently Asked Questions
What is the current Canada Condominiums and Apartments Market size?
The Canada Condominiums and Apartments Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)
Who are the key players in Canada Condominiums and Apartments Market?
Onni Group, Concert Properties Ltd, The Minto Group, Aquilini Development and Bosa Properties are the major companies operating in the Canada Condominiums and Apartments Market.
What years does this Canada Condominiums and Apartments Market cover?
The report covers the Canada Condominiums and Apartments Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Canada Condominiums and Apartments Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Canada Condominiums and Apartments Industry Report
Statistics for the 2024 Canada Condominiums and Apartments market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Canada Condominiums and Apartments analysis includes a market forecast outlook to for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
