TORONTO, ONTARIO--(Marketwired - Jan. 22, 2014) - Greater Toronto Area REALTORS® reported an 18 per cent year-over-year increase in condominium apartment rental transactions in the fourth quarter of 2013, with a total of 4,305 condo apartments leased compared to 3,644 during the last three months of 2012. Over the same period, the number of condominium apartments listed for rent was up by 31 per cent.

"The construction of purpose-built rental properties has been a tough sell over the past decade. This means that investor-owned condominium apartments have increasingly filled the void in terms of meeting the needs of renters. People looking to rent modern apartments in popular neighbourhoods close to work and leisure opportunities have been focused on rental condos. Investor-owners have moved to meet this demand by listing their units for rent in greater numbers," said Toronto Real Estate Board President Dianne Usher.

The majority of condominium apartment rental transactions - approximately 95 per cent - involved one-bedroom and two-bedroom apartments. Rent growth for these unit types was mixed. The average one-bedroom rent was down by 1.6 per cent year-over-year to $1,600, whereas the average two-bedroom rent was up by 3.7 per cent to $2,165.

"Condominium apartment completions were up in the GTA in 2013. Some of these newly completed units are owned by investors with a longer term outlook. Many of these individuals will have listed their apartments for rent. In all likelihood we will continue to see an increase in the number of apartments listed for rent in 2014. The degree to which the increase in listings is balanced out by an increase in demand will dictate the pace of average rent growth over the next 12 months," said Jason Mercer, the Toronto Real Estate Board's Senior Manager of Market Analysis.

Rental Market Summary Tables: Fourth Quarter 2013
All Bedroom Types Bachelor One-Bedroom Two-Bedroom Three-Bedroom
ListedLeased LeasedAvg. Rent LeasedAvg. Rent LeasedAvg. Rent LeasedAvg. Rent
Q4 20139,356 4,305 110 $1,288 2,495 $1,600 1,609 $2,165 91 $2,523
Q4 20127,139 3,644 81 $1,359 1,981 $1,626 1,483 $2,087 99 $2,327
Yr./Yr. % Chg.31.1%18.1% 35.8% -5.3% 25.9% -1.6% 8.5% 3.7% -8.1% 8.4%
Source: Toronto Real Estate Board
All Bedroom Types Bachelor One-Bedroom Two-Bedroom Three-Bedroom
Listed Leased Leased Avg. Rent Leased Avg. Rent Leased Avg. Rent Leased Avg. Rent
Q4 2013737 285 2 $1,125 19 $1,489 97 $1,840 167 $1,946
Q4 2012642 254 2 $975 33 $1,338 77 $1,881 142 $1,880
Yr./Yr. % Chg.14.8%12.2% 0.0% 15.4% -42.4% 11.3% 26.0% -2.2% 17.6% 3.5%
Source: Toronto Real Estate Board

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