‘The glory days of easy returns and cash flow are likely over,’ says the co-author of a report on the cash crunch facing Toronto’s condo market.
Higher interest rates are pushing the GTA’s new construction condo market to a tipping point, says a new joint report by market research firm Urbanation and CIBC Capital Markets.who bought pre-construction units as rental properties were losing money last year.
Things will get worse, says the 2023 GTA Condo Investment Report, co-authored by Urbanation president Shaun Hildebrand and Benjamin Tal, deputy chief economist of CIBC World Markets. “This comes back to the issue of relying entirely on mom and pop investors to drive rental supply,” he said. “Ultimately you’re left with a big supply gap at a time when rental housing is needed more than ever.”
In a 2018 report, Urbanation and CIBC released a profile of GTA condo investors that showed most of them are local immigrants aged 40 to 60. Only about 10 per cent were international buyers. On Tuesday,that said the vast majority of real estate investors live in Ontario, most were over 55 and had an income of $110,000 with immigrants comprising a share of investors over and above their population numbers.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canada's housing crisis demands better buildings — here are the changes that could improve apartment and condo lifeHere are the changes that could improve apartment and condo life
Read more »
Canada's housing crisis demands better buildings — here are the changes that could improve apartment and condo lifeHere are the changes that could improve apartment and condo life
Read more »
Condo Smarts: Are age bylaws enforceable under Bill 44?In the short term, exercise patience, accommodate residents and seek legal advice on your 55+ bylaws.
Read more »
Vancouver council to vote again on Chinatown condo developmentThe city’s development permit board rejected a proposal in 2017 from Beedie Holdings to build a nine-storey mixed-use building at 105 Keefer St., but the company has been fighting that decision ever since
Read more »
Why are so many condo elevators out of service? Experts say just four companies control most of the market — and oversight is poorA 2018 auditor general report found large elevator companies are the primary cause for “worsening elevator safety.” The regulator says it’s gathering data on the issue and plans to issue fines in the future.
Read more »
Poll: Northern readers less likely to want Charles on our moneyRecent Village Media polls point to regional divide over the monarchy
Read more »