The dream of families to live in such properties will continue, but it will become more expensive as more lower-income families must opt instead to occupy two- and three-bedroom suites in more intensified areas.
For the investor, however, this presents an opportunity to get into the market and benefit from the value appreciation that will occur – a benefit intrinsically tied to the fact such properties sit on their own of land. The investor with the longer-term horizon will benefit the most.
Condo suites will still present an investment opportunity especially for foreign buyers unable mortgage more than 60 per cent of the purchase value and in it for the long haul.
But in a city where condo construction continues to run strong with no end in sight, the future performance won’t be as strong compared to single-family homes, for example. It runs the risk of taking hits to its value in those times where demand fails to absorb supply as we are presently seeing.
The fact is that the 20,000-plus units coming on-line in recent years is hard for most cities in the world to absorb, and Toronto is no exception.