A Quick Real Estate Market Update On Toronto
Tuesday Feb 26th, 2019Share
Real estate is getting interestingly creative and navigating through uncertainty in the Canadian market. Lifestyle trends are changing, with technological change in the markets, and social changes. With change all around, the real estate market cannot stay quiet for long. There have been alterations in the real estate market and Toronto condos for sale have seen a major rise in recent past. Rapidly accelerating digital transformation, change in marketing strategy, address affordability, etc. are a few things that are being looked upon.
Change is the only constant. In a dynamic sector like real estate, there have always been shifts and changes. The only alter part is that the change is too fast to comprehend now. There's too much going on, in too little time. Majorly affected cities in Canada are Toronto, Calgary, Yorkville, etc. The Toronto Condos and Yorkville condos for sale are having massive turbulence when it comes to real estate affairs.
A rise in expectations of the tenants
The significant changes fuelling the unpredictability are technologies like blockchain, cryptocurrency, predictive analysis, machine learning, and virtual reality. The CEOs who have embraced the change are hiring people to alter their business models; the others are merely risking it. The condominium industry is doing well, as of now; but the tenant expectations have risen considerably.
The Toronto waterfront condos have always been in demand and given a more than satisfactory experience to the tenants. With the inculcation of smart technology, people's lifestyles are getting more sophisticated, and they demand a better personal experience.
How do customers affect the arena of a real estate market?
The Toronto condos and Toronto lofts are major real estate projects that attract a crowd from all across the world. They must be upgraded to reach the level of customers’ expectations. It’s a fact that buyers have the highest influence on the product sold in the market.
According to statistics, the following are the important issues that are having a major impact on the real estate property in Canada: -
The factors have been arranged in the ascending order of importance and impact score given out of 5.
1. Workplace automation: 2.8
2. 3D printing: 2.87
3. Augmented reality: 2.9
4. Blockchain: 2.98
5. Internet of things: 3.28
6. Big data analytics: 3.35
7. 5G: 3.44
8. Construction technology: 3.5
9. Autonomous vehicles: 3.7
10. Drone technology: 4.0
From the statistics, it is clear that the major trend in real estate presently is the intersection of real estate and technology. Since the buyers of the luxury condos Toronto are rich businessmen or big dreamers, they demand a high-profile lifestyle. The builders are hiring specialists to think creatively to incorporate these services in the condos and lofts.
What are the high performing markets in Canada?
It’s true that every real estate that its own challenges and opportunities. Explore the top 10 well-performing markets in Canada.
* I. Toronto
* II. Vancouver
* III. Montreal
* IV. Ottawa
* V. Quebec City
* VI. Winnipeg
* VII. Saskatoon
* VIII. Halifax
* IX. Edmonton
* X. Calgary
What’s the insight on real estate in Toronto?
In spite of the depression and uncertainty in the market in 2019, real estate in Toronto is prosperous. It tops the real estate market in Canada due to the luxurious Toronto condos for sale.
Rise in demand for real estate
Let's look into some technical details regarding the trends of the real estate market. Due to the net immigration hike of 15 percent in the Greater Toronto Area, the demand for housing rose in 2018-19. This is majorly why Toronto edged out other markets and became the top market to watch in 2019.
According to the Conference Board of Canada, the construction industry is on track with a linear graph of growth. The GDP is forecasted to grow from 2.4% in 2018 to 2.5% in 2019. The contributing factors are definitely the Toronto waterfront condos and the Toronto lofts for sale. Everybody is eyeing them.
Region has faced demographic shift
According to market analysis, the housing prospects of Toronto ranks 1, amongst the market as well. Although the region is slowly feeling the effects of demographic shifts, the high demand drive is undisputable. According to the report by Ontario Real Estate Association, by the next decade, there’ll be over 7 lakh first-buyers targeting the Toronto and Hamilton markets. The special targets being the Toronto lofts for sale and the condominiums.
Demand for office spaces on a high note too
Toronto is looking steady and strong across all real estate sectors, as of now. Even after the depression in demand and prices in other markets in Canada, the luxury condos Toronto are saving the economy with constant demand. The demand for office space is unusually high in demand. In the later months of 2018, the vacancy rate of office space went down to 3.7%. As we approach 2019-20, the supply is likely to get tighter.
The demand to such a great extent is opening spaces for new construction sites. Thus, we can see that, apart from the Toronto condos, there’s rising demand for office spaces as well. It’s undeniable that the strong demand is creating a strong momentum to push the companies to meet the demand by increasing supplies.
Why should you invest in Toronto condos?
The frequently asked questions include: -
“Why should we invest in Greater Toronto Area condos?”
“What’s the update on the condominium market?”
“What’s the scope of development in Toronto condos?”
“Is it a wise option to invest?”
“What are the risk factors and returns?”
To answer the questions, investing in an ever-growing market is always profitable. The Toronto condos market has seen only growth in the past decade; thus, investing is a good option. Real-estate investments are one of the safest means of investing money. It’s great for a steady, stable and long-term profit.
The future of housing communities
You'd be wondering, amongst all the other properties in Toronto, why condos? The answer is simple; condos are the future of the housing community in GTA. The lifestyle and cost of living in Toronto are such that, people living there can afford condominiums and demand that kind of luxury. Due to all the technological advancements and change in lifestyle; the construction patterns have changed too. Previously, the proportion between homes and condominium construction was 80% houses and 20% Toronto condos. Now, it is 30% of homes and 70% condos and luxury lofts.
There is a total of 25 Urban Growth Centers in GTA. It’ll be fruitful to invest here, than anywhere else. These 25 growth centers will have effects of intensification and densification. There'll be more options for learning, living, playing and working. These areas are expected to grow in population significantly. Population and rise in housing numbers are directly proportional. Hence, better real estate.
What’s the affordability like?
You pay for what you get. There’s a reason why people flock to the Toronto condos market. The condos have a very wide range of facilities and living there is an entirely different experience altogether. When you compare the price and the lifestyle offered; Toronto condos for sale are affordable.
Investing in these, have assured returns. Luxury condos Toronto are an excellent real estate investment choice. Not just for investment purposes, they are ideal to settle and make a living as well. Canada is ranked first in the quality of life it provides and is ranked second amongst the best countries to live in. With scope for constant growth, development, and prosperity, it is indeed a great option to invest in GTA.
A review on the current real estate situation of Toronto condos
The different sectors of real estate property in Toronto include: -
* • Retail property
* • Toronto condos
* • Family residential areas
* • Office spaces
* • Industrial property
* • Purpose-built rentals
The highest demand of all is for the Toronto condos. When we speak of the whole of the real estate market in Toronto, speculation taxes, tough mortgage rules, and rising rates have cooled the prices of the properties. This scenario hasn't completely hit the condominium market yet. The residential construction across Canada, surged about 30% in mid-2018.
There were close to 248,000 units, driven by condos and lofts. This report was given by the Canada Mortgage and Housing Corporation (CMHC). The market has seen the demand grow since 2007. The Toronto condos inventory has seen no downfall since 2007; there’s been a constant increase of over 35%.
Demand for condos won’t falter in near future
The consumers want single-family homes, and the demand is constantly there due to its high utility. The government policies about the intensification and densification of urban areas are contributing factors to the rise of Toronto condos. As per stats, there has been a noticeable shift to the construction of Toronto lofts and condominiums since 2007. Roughly, two out every four houses built were multi-family properties. This is in comparison to 65%, a decade back. Though there’s slight concern about the number of new Toronto condos projects, it’s believed that the demand will remain strong.
What are the things to consider while investing in Toronto condos?
Buyers are looking for a home that'll suit their expectations and requirements through the passing years. There is no flexibility issue when it comes to Toronto condos. The construction of these beautiful properties takes such a long time because there are long procedures of design editing and approval. The luxury condos Toronto let people live, work, play, learn, dine, shop and have a wholesome lifestyle.
When you invest, consider these: -
1) Location: Research and read about the neighborhood and the facilities provided. Take care that the price value you are getting is apt.
2) Development growth: You should be aware of what you’re signing up for. Ask questions and find out about what’s to come in the following years. Are there going to be more homes coming up? Is there going to be any commercial development? Any expected transit growth?
3) Rental rates: If you're buying a property to rent it out, you should certainly be aware of the rental rates in the particular area. Is the location favorable and inviting for good rental prices? Will people pay optimal rents?
4) Return on Investment: Being aware and informed about ROI's of the property is very crucial if you're planning to invest in a serious note.
5) Feasibility: Feasibility is one of the main factors you must look into, before buying a property. Many tenants desire to live in a neighborhood where they don't have to travel long distances to go to work. Look for job opportunities nearby or means of public transit.
Toronto’s condo market could get rough in 2019. Why?
The past few years, the Toronto market has been having cases of rising rents, hiked prices, limited supply, and delayed delivery. According to analysts, the market is about to get rougher in 2019, for the builders, buyers, and renters.
Affordability has always been a cause
The major issue with the Toronto condos market has always been affordability. The high prices shut down the options for first-time buyers. The prices have increased almost by 180%. In 2016, the average price was $560 per square foot. The price in 2019 is $1000 per square foot. This huge leap of price is rather indigestible and shocking.
Due to customer demands to incorporate sophisticated facilities in the construction design, the construction costs of condos have risen by 8%. In return, the rents have hiked by 10%. One of the main driving forces of the rent growth is low completion rates and cancellations. In 2018 alone, there has been a cancellation of 4000 units.
Numerical facts on Toronto condos
* • Number of Toronto condos: 150,000
* • Number of condos sold in the previous three years: 120,000
* • Condos that are in development: $100,000
* • What’s the annual income required to afford a condominium? $125,000
* • Average downtown employment income: 5.2
Predictions for Toronto real estate market 2019
The real estate is fond of the Toronto region, undoubtedly. This has given leverage for the constant price increase for the past three years. Analysts say that Toronto condos prices will moderate in the year 2019. This prediction is based on the rapid completion of condominium projects this year. Timely supply to demand will help in moderating the prices to some extent.
As per studies, the rates will rise up to 5% in the first half of the year and drop linearly in the second half. This is when the supply is ready to be delivered, and the interest rates start building up. The market is overall going to be more or less balanced this yea