Condominium Condo Market Review Forecast
|# of Sales||4,133||4,454||4,940||5,974|
|# of Rentals||4,277||5,033||6,074||6,458|
Source: Rental Market Report from TREB
Since Q1 of 2013 to Q1 of 2016:
- # of Condo Sales have risen by 44.5%. That’s an average of 11.1% per year.
- # of Condo Rentals have risen by 42.0%. That’s an average of 10.0% per year.
Since Q1 of 2015 to Q1 of 2016:
- # of Condo Sales have risen by 21.0%
- Approximately 70% of the sales occurred in the City of Toronto
- Recent polling undertaken for TREB by Ipsos suggested that approximately half of home purchases made in the GTA this year would be accounted for by first-time buyers
- # of Condo Rentals have risen by 6.3%
- The average one-bedroom apartment rent up 4.8%
- The average two-bedroom apartment rent up 8.9%
- Even with record and near-record completions over the last few years, especially in 2015 condominium apartment vacancy rates have remained low
- Sales have grown by 44.5% in the last 3 years
- # of rentals have grown by 42% in the last 3 years
- First time purchasers are being pushed out of the market due to the staggering prices of low rise homes that condos will become their only choice. In fact this is already the case as many buyers now are completely ignoring the low rise homes and looking solely at condominiums
- Rental prices will continue to rise however unlike low rise housing these increase are single digits annually
- Increase demand for larger unit condos. New developments now a day have fewer and fewer units 800 sq/ft or greater. In fact 750 sq/ft is the largest unit in many buildings downtown. Baby boomers considering downsizing and moving into a condo or young families priced out of low rise homes will be looking to move into larger units. However this is not to say smaller units are not or will not be in demand but instead we will see an increase in demand for 2-3 bedroom condos in the coming years.
- Core city centers is still the place to invest. As the city continues to grow, commuters travelling longer and longer, more job being located in the center core, its no reason why the downtown condo rental market is making up a large percentage share of the overall condo rental market. My prediction is to expect this trend to continue to grow and resist the urge to purchase in periphery area that’s not conveniently located near a public transit.