What is Going On With the Toronto Real Estate Market?  

Is it a bubble? Maybe. Maybe not. But you can’t ignore a 23% price increase!

I joined a real estate industry in 1999 and since that time, the concern that I have heard over and over again from buyers was the possibility of a repeat of the terrible 1989 housing crash. Prior that crash, from 1985 to 1989, the average price of a house in the GTA increased by 113%. In other words, the market experienced an unprecedented growth of 20% per year, over those five years. How did it happen? Basically, you can put it down to the low unemployment rate in the 1980s and large influx of immigrants to the area, which  helped to create the bubble.

When I ask homeowners why they think it happened, the answer is always something like: “Everybody thought that they had to buy a house; it sounded like the best investment.” People were buying and selling houses, hoping to make a fortune. The consequence, however, was an artificial increase in demand.

Sound familiar? This year, the average house price in Toronto increased by 23%. Developers decided to profit on this market by building condos, mostly in downtown Toronto.

During the peak of the bubble in the mid-80s, the mortgage rate reached 12.7% (does not look like 2.8% mortgage today!) Coupled with the early 90s recession, a spike in unemployment and a drop in the inflow of immigrants to the area, housing prices in the GTA collapsed. Between 1989 and 1996, the average price in the GTA declined by 40%. Downtown Toronto was hit the worst with an over 50% decline in the value of a home. It took 13 years for the average price to recover in the GTA.

So, what’s different in today’s Toronto real estate market? Should be worry about  it? Is it a bubble? You can always find warnings and red flags, but what is a real picture and why do people pay more and more for a home in Toronto ?

Reason Number 1

Our city is growing. The population of Toronto has increased by 200,000 over the last 10 years. From 2.6 million to 2.8 million, in 2016. Not as fast as we thought it would be, but it is still growing.

The population of the GTA as a whole has increased by 1 million from 5.8 million to 6.8 million people.

Reason Number 2

Toronto is evolving into an attractive city for people to live in. We have good schools, luxury real estate, job opportunities, world class hotels, restaurants and cultural events.

Reason Number 3

Toronto is the preferred Canadian city to live and work in, particularly for young Canadians. Vancouver is nice, if you’re ready to retire. Montreal is great too, but there’s a shortage of quality jobs and you have to be fluent in French.

Reason Number 4

Thank you overseas investors for your willingness to invest in our city. Overseas buyers, particularly those hailing from China, are driving the Toronto real estate market today.

A few pieces of advice from a real estate professional:

  • Watch what the overseas buyers are doing and do the same. They like properties in good locations better than money.
  • Keep buying freehold homes in Toronto and GTA.
  • Refinance your house or condo and use a fully tax deductible line of credit to invest in your second, third or more properties in Toronto.

Give me a call for  the professional advice: what to buy and where to buy it.  Remember that real estate is our biggest and safest investment. Not everyone can make million in our workplaces, but almost anyone can do it by investing right.

Love you all!

Hope to hear from you soon.

Continue reading “What is Going On With the Toronto Real Estate Market?  “

What Toronto’s skyline will look like in the near future

n partnership with the Martin Prosperity Institute, we bring you a semi-scientific glimpse into the future of Toronto. Here, the city’s most exciting upcoming skyscrapers

The One

The One

Where: Yonge and Bloor
Who: Mizrahi Developments
How Tall: 80 storeys

The One will be among Canada’s tallest towers at a monstrous 998 feet, with some 400 spacious condo units perched on top of an eight-storey shopping mall.

Continue reading “What Toronto’s skyline will look like in the near future”

How Toronto’s population will change over the next 50 years

In partnership with the Martin Prosperity Institute, we bring you a semi-scientific glimpse into the future of Toronto. Here, what’s in store for the city’s population

Photographs by iStock

The 21st century is no longer young or new. Its early years are behind us, and Toronto has settled into its new identity: a hot mess success. We grapple over how to clean city streets and air-condition crowded subways and lay an inch of new track toward Scarborough, whether above or below ground. Even now, Toronto can’t keep up with its own growth. By 2066, the future will have shaped the city in ways we haven’t imagined.

Continue reading “How Toronto’s population will change over the next 50 years”

What Toronto’s real estate market will be like in 50 years

In partnership with the Martin Prosperity Institute, we bring you a semi-scientific glimpse into the future of Toronto. Here, what’s next for the city’s housing market

Toronto of Tomorrow: House

The average home will cost $4.4 million

Current average: $622,000
Yes, you read that right. And yes, it sounds crazy. But if we’d told people in 1970 that the average cost of a house in Toronto would grow from $30,000 to $600,000 over 50-odd years, they wouldn’t have believed us either. Over the past few decades, housing costs in Toronto have risen by an average of 3.5 per cent every year. If demand for housing keeps growing—and it will, since the population is expected to double—so will the prices. The upshot? Toronto will become a city of renters, and home ownership a luxury reserved for our plutocratic overlords.

Continue reading “What Toronto’s real estate market will be like in 50 years”

Upcoming project: ANNEX YORKVILLE CONDOS

 

ayc-building2The Annex Yorkville Connection (AYC) Condos is a new Proposed Condominium Project by Metropia Urban Landscapes in the Annex/Yorkville Area of Toronto. Keep watch here for updates over the next few weeks or Register to get updated before the project goes live for Platinum and VIP Sales, and to be invited to the Private Sales Events.

The Building will be located at Davenport and Bedford Road in Yorkville, the Centre of Toronto. Get to St. George Station in under 10 minutes, or the intersection of Yonge and Bloor in under 20 minutes by foot. Continue reading “Upcoming project: ANNEX YORKVILLE CONDOS”

Upcoming project: HALO RESIDENCES ON YONGE

halo01Located at Yonge and College, 480 Yonge Street, Downtown Toronto

Price Starting From the $300’s

HALO RESIDENCES ON YONGE
By Cresford Development

Prime Downtown Yonge Location
YONGE AND COLLEGE

HALO RESIDENCES IS INSPIRED BY BACCARAT

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99 WALKING SCORE, STEPS TO COLLEGE TTC SUBWAY STATION, UNIVERSITY OF TORONTO, RYERSON UNIVERSITY, LOBLAW, EATON CENTRE, UNDERGROUND PATH AND HOSPITALS

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NEARBY RENTAL ANALYSIS (CONDOMINIUMS)

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If you would like to discuss options please email us at tkonkina@rogers.com
and we will get back to you within the next 24 hours

Why expensive Singapore property is driving investors overseas, including Canada

by ADRIAN BISHOP, www.opp.today

 

singapore
With Singapore property experts fearing falls in the Singapore stock market will have an effect on the real estate sector, it could be another tough year for the domestic market.
Instead, Singaporean property investors are turning to foreign property and preliminary data from analytics company Real Capital Analytics (RCA) shows they invested a record US$26.31billion in international real estate in 2015, half as much again as spent in 2014.

Excell Chua, Business Development Director at Singapore-based real estate media group, PropertyGuru, tells OPP.Today there are three main factors contributing to Singaporeans strong interest in overseas property investments:

  1. One in 35 Singaporeans is a millionaire – According to a WealthInsight Report in 2015, the number of Singapore millionaires increased by 17% over the past five years. Singapore now has 154,000 HNWIs, collectively holding US$806.3 billion in net wealth. Singaporeans are savvy investors and one of their successful formulas on expanding their wealth is through property investments (locally or globally).
  2. Singapore property is deemed “expensive” – since land is scarce in our city-state (Singapore’s total land area is 714 square kilometres – that’s about 15% of the size of London), the average price of non-landed freehold homes is SG$ 1,500 PSF and leasehold units would average SG$ 1,000 per square foot. A one-bedroom private condominium in a central part of Singapore would cost at least SGD 1million (approximately US$ 720,000). This local investor is then faced with options of investing his US$ 720,000 in one local property, two Melbourne properties, three Malaysian properties, eight UK properties or even 10 US properties. The huge price difference between local and overseas properties is what’s tempting many local investors to take a bit of risk and invest in foreign properties.
  3. ‘Low’ rental yield environment – our gross rental yield from residential properties in Singapore would range from 2 to 3% while commercial properties average 5%. Residential apartments in Manchester UK and Chicago offer at least 7% rental yields. Other overseas property investment opportunities that are launched in Singapore offered at least 10% guaranteed net yields.

Even if home market cooling measures are lessened, Ms Chua doubts that Singaporean international investment will decline.

“From my view point, Singaporeans’ interest in overseas property investments will continue even if home market cooling measures are lessened because of the three factors described above that are driving the capital outflow.”

The top 10 countries, based from the number of sales enquiries made by Singaporean investors under the overseas section of PropertyGuru’s website in the last quarter of 2015 is:

  1. UK
  2. Malaysia
  3. Australia
  4. Thailand
  5. Cambodia‎
  6. Philippines
  7. Japan
  8. United States
  9. Indonesia
  10. Canada

“Singaporeans’ love affair in foreign real estate will continue as long as the overseas investment offer attractive capital growth, rental yields and clear exit strategies – at least the overseas investments have to be significantly better than what our local market has to offer,” Ms Chua concludes.

RCA says the record spend was boosted by big-ticket purchases by heavyweights such as GIC and Global Logistic Properties (GLP); however, mid-sized and smaller property purchases were also made by Singapore developers and family offices increasingly turning overseas in the face of a dour outlook for real estate at home, with the imposition of property cooling measures, the AsiaOneBusiness website reports.

Worldwide, Singapore ranked as the fourth-largest cross-border property investor in 2015, the same as in 2014.

US buyers came top on US$58.74billion, followed by investors from Canada (US$32.17billion), Hong Kong (US$31.44billion) and China at US$23.35billion.

The inflow of foreign capital into the Singapore property market was stable at US$3.51billion in 2015, led by Chinese investors at US$1.03billion.

Source: www.opp.today, Main picture by Sergio Sanchez www.freeimages.com