Condominiums have emerged as the dominant type of new housing in contemporary urban Canada, a trend that will not be reversed in the foreseeable future

Dec 3, 2013 - Canada’s three major condo markets — Toronto, Vancouver and Montreal — are expected to face some “instability” over the next two years as sales drop off from boom levels and starts outstrip demographic demand, says a new report written on behalf of realtor Royal LePage.

Canada’s three major condo markets — Toronto, Vancouver and Montreal — are expected to face some “instability” over the next two years as sales drop off from boom levels and starts outstrip demographic demand, says a new report written on behalf of realtor Royal LePage.

Price volatility is likely over the next two years as a record number of new condos, sold in the preconstruction phase over the last few years, actually come on stream. But high rental demand, rents that are increasing at more than twice the rate of inflation, strong job growth and demand from young professional echo boomers to live close to work mean “there is no bubble in Canadian condominium markets,” says Dunning.

Condominiums have emerged as the dominant type of new housing in contemporary urban Canada, a trend that will not be reversed in the foreseeable future,” says Royal LePage CEO Phil Soper.

“It can reasonably be expected that over the long-term, condominiums will experience price growth similar to that seen for the so-called ‘traditional’ housing forms,” says Dunning in his report.

Over the last 20 years, GTA condo prices have averaged annual gains of 5.1 per cent, not far behind the 5.9 per cent gains for single family homes, says Dunning, who is also chief economist for the Canadian Association of Accredited Mortgage Professionals.

In Montreal, condo prices have climbed by about 5.5 per cent per year over the last two decades, outstripping annual house price gains by 0.4 per cent, it notes. Vancouver condos saw price gains averaging 4.5 per cent, compared to 5.7 per cent for single-family homes.

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Marlene Ofter

Marlene Ofter

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