Toronto Condos – Booming Market for New Construction Condominiums

Beautiful New Condo Buildings in Toronto

Over the last 10 years, condo design has undergone dramatic shifts. Engineers are able to build whatever condo architects can dream up.  Normally dull and unimaginative, the skylines and communities of Toronto and Vancouver are undergoing rapid change with spectacular results in living and visual appeal.

In fact, we’re enjoying an explosion of interesting new architecture, property layouts and rich condo amenities for all newcomers to urban vertical living. As the latest Toronto market report reveals, prices are rising.

condos eau de soleil
Eau De Soleil in Toronto offers some impressive views for hot tub lovers.

Why Buy Toronto Condos?

Once prospective buyers make the mindset adjustment to see condos as “vertical communities” with all the amenities they most want, the decision to buy is a lot easier. With home prices out of reach, many first time buyers can only consider a condo purchase.

With buildings themselves projecting creativity, it helps launch buyers into the market with more purchase intent. What do most condo buyers demand in a new condo?  Views, especially views of Lake Ontario. Any spot on the waterfront from Queen’s Quay all the way to Burlington is in hot demand.




And the demand for condos in Toronto is strong. In fact, many projects almost abandoned due to the recession are roaring back into production, sometimes at a larger scale than previously planned.  According to TREB, the resale condo market jumped by almost 13%. Asian and Middle eastern investors are adding to the demand of first time buyers.

A Great Selection of Unique Condominium Spaces and Amenities

The selection of new condos in Toronto (and Vancouver) is almost ridiculous.  Formerly criticized for “oversupplying the market” experts are realizing supply won’t be enough in the coming years.  That availability will be a big drawing point for young immigrants from China whom we need to attract here. You’ve probably noticed some the designs have Asian themes which adds another interesting element to the condo market.

I’ve always believed there’s no contest between a house and a condo, but condo design has become very innovative. Both interiors and exteriors, plus building amenities are amazing. Pools, views, exercise areas, basketball courts, makes life very convenient and even romantic.

Given detached housing is unaffordable for most, condos are a nice alternative for those who want easy living combined with affordable pricing.




The Shop at Don Mills in Toronto seen below, is a nice sized development, the way they should all be, but with all the super amenities of course. You have to admit, that might be as good as condo living can get.

condostheshops

Living on the Lake Ontario waterfront is a dream for many. The BridgeWater Residences, Burlington, a 22 story story structure fused with a 7 story building gives you a spot overlooking the fast improving Burlington waterfront.  Residents will enjoy a state of the art fitness centre, an entertainment lounge, an indoor pool and even 24 hour room service and other hotel like services. 11,000 sq ft of commercial retail space has been set for the ground floor. Definitely a statement of luxury, prestige.

Condos for Sale Oakville Bridgewater Residences

The Shores in Oakville would be amazing to place to call home. Right above the Harbour on the waterfront. I walked around it and thought it was very nice.  The units have nautical themes and they were available starting at $390,000.

condostheshores

The Absolute Condos in Mississauga — an awe inspiring 56 story and 50 story condo couple that gives the city the distinction it never had.  Standing at the base of either building is even better than being under the CN Tower. It’s so odd how they lean over from high above. You shapes beckon you to dream about what it would be like to live here.

If you’re interested in purchasing a unit, call Damir Strk of Remax

Absolute Condos Mississauga

Eau De Soleil in Toronto is being hailed as one of the coolest condos in the world. The newest development on the Humber Bay shoreline will be home to more than 1000 residents. They will enjoy some of the coolest living spaces yet in Toronto. And the views as you can witness here are incredible.  For anyone who enjoys these social and vibrant communities, Eau De Soleil won’t disappoint.

eu de soleil Condos Humber Bay Toronto

eaudesoleil

edswaterfrontview-condo

Pier 27  Tower on the Lake will be constructed in the Queen’s Quay area at the bottom of Yonge St.  It will be one of the more unique luxury condominium developments in Toronto highlighted by the skybridge which joins the develpments 2 separate buildings. One 35 story building is easily recognizable to its piled plate design will have over 300 suites.

pier 27 condos for Sale

Garrison Point is a new Condo complex with a obelisk style design. It’s located in the southwest part of Toronto on the shores of Lake Ontario. Excellent views.

condosgarrison

One Bloor is a spectacular new development near Yorkville gives residents of the advertising district a special home. The building is now Toronto’s second tallest residential building at 76 stories and 844 feet.  It will offer 27,000 sq ft of resort-inspired amenities and will include 100,000 sq ft of retail/commercial space. Condo for Sale Toronto

The Emerald Condos in North York offer a scary view for top floor residents. Architects are creating features that just don’t seem possible!

Condos for Sale - Emerald Park
Emerald Park Condos Toronto

The massive Ice Condos in downtown Toronto, offer awesome views. The Wow the designs  by Lanterra Developments and Cadillac Fairview are appealing. 57 & 67 story towers containing over 1200 units. Good opportunity for Asian investors.

Condos for Sale
Ice Condos Toronto

The rooftops on condo buildings are the top of buyers imaginations but not many condo developers have any respect for those wants. The more customer oriented developers are thinking “cruise ship” for their rooftops.

condosTridel-Aqualina-rooftop

With all this glass, you don’t have to worry about depressing Canadian winters.

Condo Interior Luxury Condo Toronto Waterfront

Toronto’s not the only Canadian City with stunning condominium developments. Take a look at some spectacular condos in Vancouver.

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Toronto Condo Market Report – Update and Forecast 2017 2018

Toronto Condo Market Forecast 2018

While the Toronto housing market in 2018  is overshadowed by severe house supply shortages and ultra-high prices the condo market in Toronto and Mississauga is an attractive alternative for young buyers.

Sales of condos particularly in the under $500k market are rising and prices have risen as well. The latest Toronto condo market sales report from TREB has ben released. While TREB doesn’t publish stats on the condo market specifically much anymore, you can see the averages for each district below.

Toronto Central, Milton, Oakville, and Peel region continue to enjoy strong market demand while other areas have seen a decline in price since last fall.

The new mortgage rules now enforced means many buyers will only qualify for a much lower mortgage.




You likely have your own opinions about government meddling in the markets, however such interference can be a housing crash factor in itself.

Should you invest in a new or resale Toronto condominium? The Canadian economic Forecast and Toronto economy in particular look very good. That means condos new and old will be in demand next spring from fully employed buyers who have had time to save the big downpayments and meet more stringent lending stress tests.

As mentioned in the Toronto housing report for October, prices for Toronto condos are up 24.5% in the city of Toronto year over year.  Some of this rise is due to the coming mortgage chages. If you need a monster mortgage, you need to get hopping and call a real estate agent.

The issue of whether to buy is one of affordability for Millennial-aged buyers and as many are saving, there will be plenty of demand next spring, putting upward pressure on prices.

Millennials Are Driving The Toronto Condo Market

They’ll need more creative mortgage financing and improved condo searches to find something they can afford. Although the mortgage changes in 2018 will put an extra burden on them, and force them to stay in the rental market, they will likely have more money in the spring to buy a condo.

There’s big investor demand for condos too. Student housing is in a severe crunch in Toronto and Vancouver. Investors are well aware of the rental potential of condos and many may be investing in the Vancouver condo market and here in Toronto because of so much rental demand.

If you can’t earn a profit on capital appreciation, you can still make it on rental income.




Toronto Rents Are About to Rise

A report from BNN shows how rental income properties, including condos in Toronto. See where the big rents are.

Why are Toronto Condos such a Draw?

Toronto Condos offer higher cap rates and a larger growing pool of potential renters and buyers. And at this point with severe shortages of detached houses and townhouses, buyers are buying condos. Barry Fenton, President & CEO of Lanterra Developments, a major condo developer suggested Toronto Condo prices could could have risen 40%. They have reached 20% over this time last year.  The detached housing shortage is still alive.

When foreign investors look to escape their own country’s currency nightmares and leverage our weak loonie, they like the Toronto market. Note: If you’re a foreign real estate investor, people often refer to Toronto as being the greater Toronto area encompassing Oakville, Mississauga, Vaughan, Richmond Hill, Scarborough, East York, Pickering and even out to Oshawa. The Newmarket, Bradford, and Aurora regions are included in TREB’s housing sales reports.




Toronto Condo Prices 2017

TREB District Toronto Condo Prices March 2018 Toronto Condo Prices October 2017 Toronto Condo Prices Sept 2017 Toronto Condo Prices August 2017 Sept 2016 March 2012 Price Change over Last 17 months
City of Toronto $651,100 $555,004 $554,069 $550,299 $561,376 $361,800 13.78%
Toronto West $494,400 $446,794 $450,485 $434,218 $487,061 $286,366 1.48%
Toronto Central $656,000 $620,322 $615,654 $615,680 $682,427 $422,396 -4.03%
Toronto East $411,000 $407,775 $395,859 $403,028 $467,689 $237,909 -13.79%
Halton Region $465,300 $478,611 $519,348 $528,579 $485,128 $442,625 -4.26%
Burlington $520,300 $553,029 $514,755 $476,222 $497,800 $370,667 4.32%
Halton Hills $486,300 $516,450 $294,500 $446,971 $381,017 21.65%
Milton $432,000 $413,808 $418,219 $427,594 $406,300 5.95%
Oakville $442,100 $419,438 $606,131 $523,507 $513,682 $485,800 -16.19%
Peel Region $423,600 $389,587 $385,588 $395,188 $461,830 $433,780 -9.03%
Brampton $360,000 $354,618 $336,091 $350,401 $374,596 $351,500 -4.05%
Mississauga $435,000 $395,683 $393,441 $402,344 $485,240 $453,250 -11.55%
York Region $507,000 $495,973 $481,138 $500,456 $544,528 $537,903 -7.40%
Aurora $477,000 $608,750 $562,500 $685,874 $532,785 $525,000 -11.69%
Markham $509,000 $503,796 $486,369 $503,455 $554,643 $527,518 -8.97%
Newmarket $536,000 $416,260 $444,250 $400,340 $496,125 7.44%
Richmond Hill $475,400 $452,319 $446,505 $470,076 $542,470 $596,667 -14.11%
Vaughan $531,000 $532,144 $513,618 $521,400 $593,725 $554,211 -11.81%
Durham Region $407,800 $399,687 $365,297 $376,250 $317,855 $274,350 22.06%
Ajax $396,000 $337,317 $397,125 $379,431 $378,180 $281,688 4.50%
Oshawa $358,000 $302,333 $226,347 $315,075 $243,000 $210,667 32.12%
Pickering $501,000 $448,036 $384,300 $402,316 $396,301 $340,667 20.90%
Whitby $410,000 $448,036 $395,633 $457,143 $344,461 $294,350 15.99%

The Toronto Real Estate Board covers a huge area and below we’ll zero in on communities that may represent the best ones for you to research.

Barry Fenton, President & CEO at Lanterra Developments joins BNN to discuss the Toronto Condo market. He suggests the market is aggressively priced and complains a little about how competitive it is. He says prices will rise 40% but he has a few misgivings about the Toronto Condo market.




Big Demand for Condos as Entry Level Homes

Most home buyers in the Toronto area can only hope to own a condo. Homes are averaging over $1.5 million in some areas in the GTA. And condo developments are offering more for tenants. And perhaps the key feature of Toronto condos is their proximity to work, leisure, restaurants and shopping and freedom from the grinding commute that many Torontonians face each day. So there are good reasons to buy a condo in Toronto.

But the condo investment landscape has recently been darkened by Ontario premier Kathleen Wynne. Her government’s new foreign buyer tax might hit the condo market the hardest, but most credible experts expect demand to return. It’s a short term blip (and as of Dec 2017, the demand for condos did indeed return).

Oddly, the condo market in Toronto is much less volatile than the single housing and townhouse market in Toronto. Her foreign buyer tax and rental price controls look like they’ll miss the mark.

Lets’ take a look at the most recent Toronto condo market prices and then look onward to 2018, 2018, 2019 and 2020. This blurb from the latest TREB condo market report says it all about what’s happening right now in April of 2017:

 

What else is supporting condo sales is proximity to work. Commute times are awful, gas prices are very high, and young millennials are having trouble handling rent/mortgage/ and car payments. Something has to give, so workers are choosing to move into the city near their jobs.

Where are Toronto’s Best Investment Condos?

As the graphic above shows, the top location is Toronto Central (where home prices are highest too), Toronto West and Mississauga. The bulk of these listings are in huge mega-sized condo towers and there are more of them being built. Toronto Central is also close to the U of T, Ryerson, and other colleges where off campus housing is in hot demand. It’s the same situation for Vancouver condo rental and investors should take note.

Toronto’s C02 district is your million dollar listing area. With an average price of $1,050,000 these are your Toronto luxury condos. This area is located just north of Downtown/Bloor st, near the University of Toronto. This suggests that proximity to U of T and downtown offices may be the primer driver of Toronto condo prices and may drive sales of Toronto homes as well.

Screen cap courtesy of the Toronto Real Estate Board. See more at trebhome.com

How Much Have Prices Risen in the Last 5 Years?

Should I Buy a Condo in Toronto?

Should you buy a condo in Toronto, Mississauga, Scarborough, or Brampton?  Demand for condo purchases is rising, the Toronto economy is strong and positive, and rents are rising fast.  At some point, you have to jump in, or you’ll never build homeowner equity.

What to Consider Before you Buy a Condo

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Up or Down. How Will the Foreign Buyers Tax Affect Toronto Condo Prices?

Toronto Condos – Still a Smart Investment?

Screen Cap Courtesy of Pier 27 Condominiums, Toronto

The Toronto Condo Market couldn’t be more difficult to comprehend right now after the Liberal’s pushed their unwise Foreign buyers tax and rent controls. With availability of condos squeezed, prices in Toronto rose to record levels. What will happen this year and 2018 in Toronto’s condo market?

Toronto Real Estate Boards latest facts:  Condo availability down 18.8% and condo prices were up 24.3% compared to last year.  Demand for condos is expected to stay strong or strengthen while sustained lower availability should keep prices strong 2017 through to 2020.





Questions: Which way will prices and condo supply go in Toronto? Will reduced condo construction offset any rent controls now in effect? Can investors and condo developers still make a good ROI despite the rogue foreign buyers tax? Will the Ontario’s measures push the province into recession? 3 housing experts weigh in with their views below.

Should I Sell my Condo Now?

Urbanation’s Shaun Hildebrand

Urbanation senior vice-president Shaun Hildebrand suggested that rent increases had leveled off recently due to a new supply of condos hitting the Toronto market. His beliefs correspond with many experts belief that a lack of supply is the problem and that new supply tames the price increases.

In the Urbanation post: “While the market remains undersupplied, the report says the 11,315 newly completed condos that reach closing in the past six months helped to alleviate recent pressure on rents.”




The new foreign buyer tax is expected to kill demand from foreign investors. Kathleen Wynne has characterized these foreign investors as speculators as “undesirable” parking their money. She didn’t comment on whether immigrant investors are coming here to launch their business to give their kids a great education. She failed to specify why foreign investors parking money here is wrong or illegal. And she provided absolutely no data regarding how much foreign investment actually takes place in the Toronto Housing Market.

A number of Realtors and experts say foreign investment is only a small portion of the Toronto housing market.

If that’s the case, Toronto condo prices similar to Toronto detached home prices will likely not fall much and will recover probably by late summer. Some say this will be a brief market letdown and if new condo projects dwindle in number, it will only drive up condo prices in 2018 and 2019.

As you can see in these stats from TREB below, condo prices in Markham, Vaughan, Toronto West, Richmond Hill and even the hot zone of Toronto central, are reachable for many buyers. Adding 20% should still make them affordable.

Emporis, a research firm that specializes in Condo development reporting says there are 154 condo projects currently in construction in Toronto with another whopping 364 planned and 382 unbuilt. Ontario’s depressing tax could put prevent many new projects from moving forward which will constrain development and lower condo availability. That will move Toronto condo prices higher in the long term, assuming Ontarios economy can continue improving.

Barry Fenton, CEO of Lanterra Developments

Lanterra Development is a major condo developer in Toronto forecasts that condo prices will rise another 40%. Here’s the video interview with Catherine Murray of BNN.

Brad Lamb of Brad J Lamb Realty

In an early interview with Brad Lamb, a well known Realtor specializing in downtown Toronto Condos, Lamb suggested the Foreign Buyers Tax could conceivably lead to recession in Toronto and across. Lamb was then quickly rebuffed by Doug Porter, Capital Markets Chief Economist of BMO Capital Markets.  Porter blurted, “And I have eaten, drank and slept the Canadian economy for more than 30 years,” which look a little like a smackdown of Lamb’s credibility and capacity to speak with authority on the matter of housing economics. However, Bank representives to tend to align with current government positions on these types of decisions so we have to question Porter’s credibility as well.




In that same BNN interview, David Madani, of Capital Economics said that Toronto new housing construction accounts for 1% of Canada’s GDP:  “Accordingly, a moderate slowdown in Toronto housing construction wouldn’t put the entire economy into recession… It would take a much broader negative shock to national housing investment and personal consumption to put the whole economy into recession.”

But as we know now, the US is beginning to apply border taxes and we have to wonder when Trump will tax Ontario’s lucrative auto industry. The 1% that foreign investment in real estate provides, suddenly looks large. Now that the tax has been announced, foreign investors and our own condo development companies won’t trust the government.

 

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