Over 57% of owners don’t actually live in their condos. Instead, they rent them out, leave them vacant,
or wait until they are built and sell them off at a higher price, Statistics Canada finds.
The recent report is part of the Canadian Housing Statistics Program (CHSP), which gives insight into
residential property ownership in Canada. Based on private and public data sources, StatsCan
determined that 57.3 per cent of condos in Ontario are investor-owned; the majority being in Toronto.
Not surprising then that while prices have slowed in their rise in the second quadrant of 2108 they are
still on the rise, most likely due to the investors.
That does not seem to stop anyone; demand for condos is so high. The city’s supply is lacking, and other
property types, such as detached homes, are unaffordable for many, especially with the new mortgage
stress test rules.
Additionally, come September, the federal government’s First-Time Home Buyers Incentive will limit
Torontonians to buying condos due to its price cap, which will likely impact demand yet again.
As of June, the benchmark price for a Toronto condo was $539,500. That’s a 7.5 per cent increase
compared to the same month last year, according to the Toronto Real Estate Board.
Condo prices are still driven up by factors like high immigration, a strong job market, rising income, low
borrowing costs, but we see demand starting to take a hit due to high prices.
What does that mean for you? Will you be looking into becoming an investor in the preconstruction
market? With so many options to choose from in the GTA, it might be an option worth exploring.
Contact me for questions about real estate or to find out about pre construction options.