Toronto’s soaring home prices are in line with global cities such as New York, Hong Kong and London. Although the market is fairly balanced, it is not being driven by foreign capital. It is being driven by Canadians moving up and buying for the first time. However, the interest that is being driven from overseas is from foreign families who are buying additional residential real estate and believe in investment grade quality properties.
When compared on a global spectrum, Toronto’s condo’s are fairly priced and is significantly lower in comparison to Vancouver’s real estate market. Furthermore, this balance creates opportunity for people to create wealth and expand their horizon with investment. Toronto’s is a market driven on fundamentals such as supply and demand which is evident in the dangerously overheated housing market. The resale home prices sores over 20 per cent last year and 71 per cent were those of foreign investments, more specifically Chinese.
Finally, there is no indication that the appeal of Canadian real estate, whether it be commercial or residential, will decline. A recent uptick in purpose built rental development is expected to increase.
Source: Toronto Star, Kalinowoski