Toronto’s real estate market has been on the rise over the past decade, with condo living seeing a significant increase in popularity. In recent years, Toronto’s downtown core has seen a surge in new condo developments, resulting in increased occupancy rates and investment opportunities. In this article, we’ll explore the reasons behind the rise of condo living in Toronto, and the investment opportunities that come with it.
Reasons for the Rise of Condo Living
- Affordability: Toronto’s real estate market has been known to be expensive, with detached homes and townhouses in prime locations being out of reach for many. As a result, condos have become a more affordable option for those looking to own property in the city.
- Convenience: Condo living offers a level of convenience that is unmatched by other types of housing. With amenities like fitness centers, pools, and concierge services, condo residents have access to everything they need within their own building.
- Urbanization: Toronto’s downtown core has become increasingly dense, with more people wanting to live closer to the city’s amenities and job opportunities. This has resulted in the development of more condos, with developers looking to cater to the needs of urbanites.
- Maintenance-free living: For many, the idea of owning a detached home with a large yard and the associated upkeep is not appealing. Condos offer a maintenance-free living option, with building management taking care of things like landscaping and snow removal.
- Security: Condo buildings are equipped with security systems and on-site staff, making them a safe and secure housing option for residents.
Increased Occupancy Rates
With the rise of condo living in Toronto, occupancy rates have increased significantly. According to the Canada Mortgage and Housing Corporation (CMHC), the overall vacancy rate in Toronto was just 1.5% in 2020, with the vacancy rate for purpose-built rental units at 1.1%. This low vacancy rate can be attributed to the fact that many new condo developments are being sold before they are even completed, with investors and buyers snapping up units as soon as they become available.
The increase in condo occupancy rates has resulted in significant investment opportunities for those looking to enter Toronto’s real estate market. One such opportunity is through assignment sales.
An assignment sale occurs when a buyer purchases a pre-construction condo unit and then sells the right to the unit to another buyer before the unit is completed. This type of sale has become increasingly popular in Toronto, with many investors buying units in new condo developments and then selling them for a profit before the building is even completed.
Another investment opportunity in Toronto’s condo market is via rental properties. With occupancy rates being so high, rental properties are in high demand, and investors can see a significant return on investment by renting out their units.
The rise of condo living in Toronto has been driven by a variety of factors, including affordability, convenience, urbanization, maintenance-free living, and security. With occupancy rates at an all-time high, there are significant investment opportunities in the city’s condo market, particularly through assignment sales and rental properties. As Toronto’s real estate market continues to grow and evolve, it’s clear that condo living will continue to be a popular option for those looking to own property in the city.