Us 40 and 50 somethings should get with the program. It’s often said-’Toronto can’t support so many condo developments.’ In the past I’ve kind of agreed, but no more. My response will be “There are going to more, and not just in the Core.”
It is true that a very high percentage of purchasers over the last 10 years have been investors and this has driven the market to date. But when you dig a little deeper there is in fact another systemic-and more important-shift occurring.
People want to live downtown.
In a recent report, as reported in today’s Toronto Star, TD economist Francis Fong notes ” double-digit job growth in downtown Toronto from 2006 to 2011 has followed in the footsteps of all those folks who are now opting to live downtown, rather than in the suburbs, close to transit lines and amenities in what’s now become a vital, vibrant world-class city.”
Large employers who very recently were setting up shop in the suburbs are now returning to the core-just look at all the commercial space under construction. Why? That is where the labour pool is.
Governments want intensification
The GTA housing market is shifting away from low density housing (detached) towards higher density (condos). Government policies at the provincial and municipal levels have created this shift. We see this most notably in Toronto, but even in the suburbs. In Oakville, for instance, the development north of Dundas Street will be much further intensified (higher percentage of condo’s, semi’s, townhouses) than south of ’5.’
George Carras, president of RealNet Canada Inc. noted that as of November 30, 57% of new home sales were high-rise. My opinion is that this % will continue to increase. With less supply, low-rise prices of both new builds and resale will continue to increase. The impact will be felt not just by first time buyers, but by ‘Next to Last to Sell’ downsizers who will end up moving in increasing numbers to ‘condominiumized’ towns and semi’s.
Lot’s to consider.
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The Blair Zilkey Team-Insightful Advice, Leading Edge Implementation.