The booming condominium market in the GTA has been fueling real estate sales for years, providing buyers with options for investing and living.
TD Canada Trust’s 4th Condo Poll revealed that the low maintenance of condos compared to homes is the biggest motivation for those buying condos, making up 36 per cent of their decision-making power, while affordability comes in second at 24 per cent.
In addition, the poll also found that 37 per cent of Canadians would consider investing in a condo that would not act as their permanent residence.
“Most of my clients for condos are investors, people who have been here for a while and have some extra money that they invested in pre-construction condos,” says Sam Elgohary, a real estate broker with Century 21 who specializes in new condo sales.
A recent article in --international-buyers-undergird-toronto-s-condo-market. The Toronto Star reported that new Canadians make up a large portion of this condo-buying population. The York Harbour Club in Toronto targeted foreign buyers and new Canadians in their selling strategies, with 60 per cent of the 441 condos sold in the first four weeks to new Canadians and international buyers.
RealNet Canada Inc. statistics claim that between 80,000 and 100,000 newcomers arrive in the GTA every year. With such an influx of new buyers flowing into the region with a need for housing, the condo market is providing an affordable investment option.
Ahmed Khuffash moved to Toronto from Kuwait and bought a condo in the heart of the city after trying his hand at renting. “I was tired of throwing my money away to rent, and I wanted to live by myself,” said Khuffash, who added that the space was just right for his needs and the price keeps him from falling into the trap of becoming house poor. Now he is close to work, friends and all the amenities he could ask for.
“I think more new Canadians are buying condos because it’s more affordable than houses, especially in convenient locations,” said Elgohary, adding that condos provide enough space for comfortable living without having to invest in a home in the city.
Condos are proving to be a smart investment in and around the city as prices continue to rise. RealNet says the strong performance of GTA’s new condominium market in 2010 was reflected in its pricing. “The condominium market roared past the $400,000 average price threshold in January, and closed the year with an average price of $441,663. This demonstrates a year over year growth of approximately 11 per cent,” said RealNet president George Carras.
As of July 2011, according to a recent RealNet report, high-rise home buying made up 60 per cent of housing sales in the GTA this year.
Whether it’s new Canadians and immigrants purchasing affordable housing and investing in a growing market or long-time residents looking to secure their piece of the condo pie, the high-rise market is attracting quite a crowd. And it doesn’t seem to be slowing down.
For more information on this intriguing niche and for a list of available properties, visit Century 21