Condo market in Toronto is going strong. The reason is simple. With roughly 80 thousand net migration to Greater Toronto Area, we add several thousand in population over the years. Land is scarce. This has resulted in prices of detached houses to go up. In order to keep revenues up and housing affordable, the house lots are either getting smaller or builders are opting for semi-detached and townhouses. High Rise condominium apartments are the obvious answer.
During a seminar with RealNET and FLY Condos in February 2010, I met with Christine Brennan, Director of Sales & Marketing, High Rise at Empire Communities. Empire Communities has given Greater Toronto Area a wonderful selection of excellent buildings. Their FLY condo project in the Entertainment District in downtown Toronto is a huge success. During the seminar, a presentation by RealNET president showed the trending of condos in downtown.
In my opinion, the condo market is going to appreciate on an ongoing basis. Short of having a crystal ball, the general demand will grow. Low mortgage rates are also helping. Even with the new mortgage qualification rules and the introduction of HST, the sales haven't slowed down. The average buyer will still be exempt from 75% of the new tax. New mortgage rules will ensure that we do not have buyers overstretching themselves. In the long run, this will result in a robust real estate market.
Projects like FLY Condos have a healthy mix of owners and investors. Because of this, there will not be too many units for sale at the same time, resulting in over supply. Prices are and will continue to go up significantly ahead of the inflation rate. This is one of the best time to trade and invest in real estate.