A new report from CIBC and Urbanation released on Thursday reveals that the majority of condo investors in the GTA are losing money every month as ...
released on Thursday reveals that the majority of condo investors in the GTA are losing money every month as the market faces the most"significant test" since the 1991 recession.
What's made the situation even worse is the role of investors in the presale market, which have made up to 70 per cent or more of buyers. "Prices are too high for investors to buy relative to resale prices, rents, and interest rates, while developers can't lower prices due to high development costs."since the late 1990s, and the percentage of pre-construction condos that are pre-sold is at a more than 20-year low of less than 50 per cent.The report found that in the first half of 2024, 82 per cent of investors in newly-completed condos had mortgages that were cash-flow negative.
"In a market that still builds relatively few purpose-built rentals, condo investors remain critically important for growing rental supply and contributing to the improvement in overall housing affordability and growth in the GTA economy," the report notes.
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