Condo Prices Soaring
Average cost of single bedroom unit increases by 7.2%
A one bedroom condo for one’s own? Try $1,777 a month in Toronto.
The average price for such a cozy space has shot up 7.2% from the same time last year, according to the new report from the Toronto Real Estate Board (TREB).
If you need more space than that, a two bedroom condo now averages about $2,219, almost 8% more than the same period in 2015.
The high prices won’t come as a surprise to many Torontonians struggling to find affordable places to live – something that ‘s getting harder & harder to find in the city.
Not unlike what we’ve seen in the home ownership market we’ve also seen a tightening in the rental market as well, states the director of market analysis at TREB.
It’s partly due to the fact that fewer condo projects were completed during the third quarter of 2016, compared to last year, it’s hard to say if the increase in rents with continue.
If there’s an “uptick” in completed new buildings next year it could help ease prices somewhat, but everything could be complicated by the new federal mortgage regulations. The jury is still out on the impact those rules will have. They could cause some would be first time Buyers to stay in the rental market. Either way could see an increase in demand, or you could see not as much turnover in rental stock because people stay put.
Foreign Buyers in Minority
Concerns about foreign investors snapping up real estate have dominated headlines recently, but a new report suggests domestic investors outnumber foreign Buyers in the Greater Toronto Area’s new condo market 10 to 1.
Toronto condo research firm Urbanation says foreign Buyers, whose primary residence is outside of Canada, made up only 5% of the sales of new units in condo buildings that were under development between July & September.
Meanwhile, domestic investors those whose primary residence is in Canada but who don’t plan on living in the unit made up 52% of the sales.
The remaining 43% of new condos sold around Toronto went to locals who plan to live in the property. The results of this very important survey show a rather limited role of foreign Buyers in the GTA new condo market.
Source: MetroNews – May Warren – October 2016
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