Experimental New Condominium Apartment Price Index, first quarter 2017 to third quarter 2018
For the first time, Statistics Canada is providing Canadians with data on prices for the new condominium apartment market.
This first release of the Experimental New Condominium Apartment Price Index (NCAPI) aims to close information gaps in the measurement of residential property prices. When used in combination with data from the New Housing Price Index, it provides a more comprehensive and representative picture of price change with respect to new builds.
The experimental NCAPI, which measures changes over time in the prices of new residential condominium units in apartment-style buildings, will be published quarterly, on an experimental basis, for six census metropolitan areas (CMAs); Montréal, Ottawa, Toronto, Calgary, Vancouver and Victoria, as well as for the six-CMA composite. Based on data from the Canada Mortgage and Housing Corporation, these six CMAs accounted for 86.7% of absorbed units in new condominium apartment buildings in 2017.
The experimental nature of the index is due to the fact that the methodology behind the index, as well as the data sources, continue to be explored and tested.
In addition to general feedback about this experimental data product, users are encouraged to provide information on potential data sources or data collection methods to increase the sample, particularly in Ottawa, Vancouver and Victoria, and the accuracy of quality adjustments. All feedback is appreciated and can be provided through the feedback page.
Six-CMA composite index slowed amid housing policy measures and higher lending rates
New condominium apartment prices for the six-CMA composite increased by 9.7% in 2017 and remained flat, on average, for the first three quarters of 2018. This coincided with increases in the five-year conventional mortgage interest rates, from 4.64% to 5.34% (Bank of Canada) over the same period. At the same time, changes to mortgage stress-test rules by the Department of Finance and the Office of the Superintendent of Financial Institutions took effect between 2016 and 2018.
Prices in the Toronto condominium market still rising despite housing policies
In Toronto, the largest urban market, new condominium prices increased by 10.8% from the first quarter of 2017 to the third quarter of 2018. Prices rose every quarter, despite policy measures that came in the form of a 15% Non-resident Speculation Tax starting in the second quarter of 2017.
Moderated price increases in Vancouver following policy measures implemented in 2018
The Vancouver market has also been subject to a 15% foreign buyer tax since the third quarter of 2016. Prices for new condominium apartments rose by 18.8% in 2017. However, following an increase in the foreign-buyer levy to 20% in February 2018, prices declined in the first two quarters of 2018.
Lower condominium prices in Calgary mainly driven by falling oil prices
Condominium apartment prices in Calgary have been on a downward trend for much of 2017 and 2018, as crude oil prices and employment in the energy sector remain relatively low.
Note to readers
The Experimental New Condominium Apartment Price Index, starting in the first quarter of 2017, is available in table 18-10-0162 for six census metropolitan areas (CMAs); Montréal, Ottawa, Toronto, Calgary, Vancouver and Victoria, as well as for a six-CMA composite.
With each release, data for previous quarters may have been revised. The index is not seasonally adjusted.
For more information, consult the article "Explore new experimental data on residential property prices," now available in the StatCan Blog.
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).