Contrary to many recent media publications and opinion pieces, the success of the Toronto condo continues to flourish and has a strong foundation to continue this trend. Rumours of a bubble in the market as well as claims of "overbuilding" were refuted in an article posted on CBC titled, "More condos needed to keep up with immigrant demand". The article is supported by recent statements from CIBC declaring "there is still a healthy demand for more condos" due to an evergrowing population of immigrants flocking to Toronto to cash in on employment opportunities.
“Immigrants already represent about 70 per cent of Canada's population growth at the moment — and half of those who come to Canada are in the prime homebuying age range of between 20 and 45.” – Pete Evans, CBC
According to LEED Blog, The Condo market in Toronto has seen a boom in last few years due to following factors:
• Single family homes are in short supply in downtown area hence the prices for the same are sky rocketing. People are looking for more economical options and condos have proved to be the obvious, and frankly only choice.
• The demography of Canada is changing at a fast rate, the age group between 20 to 44 years, which is target market for condos is growing at faster rate compared with other metros from developed countries.
• Toronto Condominiums are a safe-haven for foreign investment and a secure place to see their money appreciate over time.
• To provide the boost to this sector, Government has adopted a policy of lower interest rates.
• The Canadian Government is keen on preserving the green land. This has led to additional floors on existing condos. Essentially, in downtown Toronto, there is no such think as a Greenfield.
• Investors looked at it as a high return investments compared to capital market. Investors could get high returns as rents are high and interest rates are low.
In the long term, the Toronto condo market is poised to remain a hot spot for investors and immigrants alike.