CBC News put out an interesting article that discusses the consistently growing number of condo developments that we see going up in the GTA. Some people may worry that there is going to be a condo market crash due to oversupply, but I don’t think that is the case and this article looks into a few reasons. According to this article, Canada has approximately 200,000+ new immigrants, and growing, every year. A good chunk of these immigrants are settling in major cities like Toronto, Vancouver and Montreal. The fact of the matter is that these people need a place to live. Whether they are renting or buying, it makes no difference. A lot of immigrants come with their life savings and down payment so they can buy a property to start their new life in Canada. Often a condo is the ideal option for them as they are still unfamiliar with the country and the convenient lifestyle of a condo will best suit them. Having all the building amenities at their disposal and not having to shovel snow in the cold Canadian winter are a few other reasons that new immigrants may be leaning towards a condo for their first purchase.
If they are not buying condos, they may be renting one, which means that there is a need for investors to buy units and rent them out. The rental market has had quite a bit of growth in the last few years which has brought even more investors to the condo market.
I think that even if there is an excess of inventory at this moment as some may speculate, we will definitely need the additional supply to support not only our cities residents but the ever-growing number of immigrants coming to our city. Also, we can’t forget the hungry investors that seem to be scooping up everything they can get their hands on. One way or another, these units will be filled.
Written by Vinay Lakhani – Real Estate Salesperson RE/MAX Realtron Realty Inc.