Toronto’s hot condo- and office real estate markets are growing at an accelerating pace and with the right investment, buyers can expect a better deal.
The Toronto Real Estate Board’s new condo-focused report released Tuesday shows the condo market in Toronto, the country’s second-largest city, is experiencing “one of the strongest growth rates of any major metropolitan area in Canada,” according to CEO David Mihaylovich.
He also said that Toronto’s population has surpassed 3.2 million and the number of condo units in the city is expected to grow by more than 50 per cent in the next three years.
“There are many new properties coming on the market.
But there are a lot of condo developers, and we know they’re all very confident in the project they’re building,” said Mihalov.”
They are all extremely focused on finding buyers,” he added.
“It’s a real opportunity for condo developers to be able to compete on a more level playing field.”
The real estate board, which includes some of the world’s leading property and development companies, released its report Tuesday on the pace and intensity of the condo boom.
It said the Toronto condo market is now growing at a “significant” pace, with more than 200,000 condos in the market and more than 100,000 apartments expected in the coming five years.
That includes more than 2.6 million condo units being built over the past two years alone, the board said.
The new condo market has also seen a rapid increase in sales and the rate of sales growth has more than doubled from last year, with condo sales up 25 per cent over the last year and apartments up 40 per cent.
The increase in condo sales is partly attributed to the recent revaluation of the Toronto Real Property Board (TPRB), which lowered the rate on condos from an annual $8.5 million to $4 million, and said it is also due to a strong start to the construction season.TREB said condos in Toronto are now being priced at between $600,000 and $800,000.
But with prices climbing at a rate of 30 per cent a year, developers say condo sales are expected to continue to increase over the next few years.
That pace of sales is good news for developers and investors, who can expect an average annual condo price increase of between 16 per cent and 30 per and 20 per cent, the Toronto board said in its report.
“With a population of more than three million, Toronto is the most populated metropolitan area with one of the fastest-growing economies in Canada and the largest concentration of international real estate assets in the world,” Mihychuk said in a statement.
“With a mix of new and existing condo developments, the market is becoming a very attractive place to invest.
The strength of the market has seen condo developers increase sales in the last few years, and this will continue to drive demand for new condo developments.”
The growth of the condominium industry has attracted a large number of international buyers and we are seeing a strong demand for the next generation of new condo buildings in Toronto.
“The report also said the city has experienced “one or two more years of sustained price appreciation.
“It said the condo bubble is “well over a year old,” and that the average condo price in the GTA has increased by a little over 10 per cent since January 2016, from $5,300 to $5.2million.