January 10, 2017 - The majority of buyers (52%) of new condos (in Toronto) are investors who do not intend to occupy them, reveals a survey conducted by Urbanation Inc. in the greater Toronto area, during the third quarter of 2016. The survey also found that 5% of new apartment buyers are foreigners.
These investors accounted for only 2.3% of buyers in the Queen City in 2016. They are particularly interested in new units, as well as those in buildings comprising 500 condos and more.
For some time, persistent rumors that foreign investors will be taxed have been heard in Ontario. However this recent survey suggests that it may not be necessary to do so.
This being said, another survey conducted by Urbanation Inc. reveals that the number of available condos – again in the greater Toronto area - fell 13% between July and September 2016. Market conditions became very tight during this period. The average time to rent a condo was only 12 days, while the monthly rent asked for doubled in one year.
Given the greater scarcity of condominium apartments, this data is not surprising. In this context, it will be interesting to observe the evolution of the residential real estate market (in Toronto) in 2017.
Montreal, January 10, 2017
Source: Lash/Condo Law
