Analysis-Canada city condo rebound has further to go, fueled by rental demand
Aug 16, 2021
Reuters
Excerpt
Condominium markets in some of Canada’s biggest cities have rebounded strongly this year, and agents and analysts say the market could once again return to pre-pandemic red-hot conditions as rental demand surges and inventories evaporate.
The condo market, which had been hot for years, cooled quickly last year during the pandemic as investors fled, spooked by the exodus of renters from cities to live with families or find cheaper places elsewhere.
Short-term rental demand dried up and first-time buyers flocked to the suburbs and smaller towns to work from home.
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Shrinking available supply is further boosting the condo sales market. Construction started on about 1,143 apartment and condo units in June in the Toronto metropolitan area, down over a third from a year ago and almost half the level of two years ago.
And while ongoing construction of condos was at a record 86,149 units in the second quarter, about 92 per cent of this was already pre-sold. The pullback in demand last year, combined with a dearth of land downtown, has dampened the launch of new projects, Hildebrand said.
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https://cn.reuters.com/article/us-ca...-idCAKBN2FH0ZN
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