Although stats in the condo rental market in Toronto are at an all-time high, one veteran investor is still supportive of prospects within Canada’s largest city.
Todor Yordanov, a Toronto-based investor, mentioned to the Canadian Real Estate Wealth that, “They are still an excellent buy. I’m also an agent and I deal primarily in the condo market,” adding that, “I just got off the phone with my rental agent who does leases in Toronto and we’re seeing five offers for single condos for rent.”
His experience is one that may be common for investors across the city, despite the fall in condo leases from 10% to 7,397 units year-over-year in Q2 2016.
“Rental supply in the GTA has tightened due to fewer completions and less turnover, which is creating conditions for stronger rent growth” Urbanation’s senior vice president, Shaun Hildebrand, stated in a release. “With not as many would-be buyers vacating their units for the ownership market, competition among renters has increased over the past year.”
The report further revealed how rents rose by 5%, a trend Yordanov expects to continue.
“That will only change for the better,” he said. “We’re still having incredible immigration in Toronto; 200-250 thousand people moving in every year and the builders just can’t keep up with demand.”
According to Urbanation, total listings fell 15% year-over-year, contributing to the rent growth.
Rents now average $1,934 for about 741 square foot unit. Also hitting a new record, the average rent-per-square foot came to a $2.1 psf in Q2.
Voicing his opinion, veteran investor Marcel Greaux maintained that the latest figures are good for current investors; however, future speculators should be wary.
“Rental lease rates remain low. Choice locations are in high demand and housing is unaffordable to purchase,” the Toronto-based investor told CREW. “For those who are already in the market its good news. Those attempting to enter the market should proceed with caution and run detailed proformas before moving forward.”