Colliers Q3 2023 - GTA Multi-Family Market Report

Canadian Multi-Family Apartment Building

Colliers GTA Multi-Family Market Report

In Q3 2023, the Greater Toronto Area's multifamily market faced reduced transaction numbers and sales volume, influenced by rising financing costs and a shift towards smaller deals. While the sector faced challenges, the consistent rise in Toronto's rental rates prevented further value erosion.

  • The total sales volume for Q3 2023 was $91.1 million, a significant drop compared to the $627.3 million in Q3 2022.
  • The average price per suite YTD is $324,192, which is a 9.1% decline year-over-year.
  • The Bank of Canada's key interest rate reached 5%, its highest since 2001. The CMB 5-Year rate, crucial for CMHC financing, rose to 4.49%, about 90 basis points higher than the previous year. This has reduced the leverage buyers had in the past.
  • On September 14th, the federal government removed the GST on new purpose-built rentals, and the Ontario government exempted these rentals from PST. This has revitalized many rental developments.
  • Rental rates in Toronto continue to rise. One-bedroom units average $2,620 per month (a 10.5% increase year-over-year), and two-bedroom units average $3,413, up 7.1% year-over-year.

Read Colliers' Original Article and Report

Lindsay, Kyle. Itamunoala, Dayma. Bruchkowsky, Matthew. Prachter, Zoe. (2023, Oct 9). GTA Multifamily Market Report Q3 2023. Colliers.

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