What do you think?
Since last 5 years Toronto’s real estate is booming to its new heights. Average house cost crossed a million dollar mark!! Not everyone can afford to buy it. What is means? Is Toronto going taking the similar direction as New York took is 2008 and suffered a distarious storm of property market burst?
What do you think?
There are couple of points worth thinking about the biggest city in Canada, Toronto is that it is the home to many immigrants from all over the world and consistently attracted people from across the globe to make this beautiful city their home since over a decade. Toronto is ranked in top five cities in the world to live in as well. Generous Chienes money keep flowing in this sity. Many Chinese immigrants came here invested in million in properties which is one the reason that property market went too up. And year by year demand of luxurius homes is increasing. Many surveys done by different agencies says this fact. But till when Chinese money will flow in?
Right now government policies are such that many Chinese want to leave china and they look for better place to immigrate. Canada comes first better choice. Canada has long history of Chinese immigrants as well. Not only that many of Chinese origin people have significently contributed to Canadian economy, started companies (for example one of big company ATI technologies, acquired by AMD in 2003), provided jobs to many people. THis is all a good sign. However the original question remains the same – till when Chinese money will flow?
I guess, it depends on Chinese government policies. If Chinese government loosen up and provide worth reasons to stay in China. If quality of life improves and people get or fell almost smililar way of living as they get in Canada, I gess that would be the tipping point for Chinese flow. But when? I think it is very hard to say while I am sitting here in Toronto and do not know much about what is currently happening in China. But based on my insight, I may say that, it might take a very long time.
However the scenaios may change a bit – instead of investing in high cost houses, chinese buyers may want to invest in condominiums or alternative mode of investments. This will impact housing prices and prices may drop down.
Nevertheless condos have their own problems and houses have their own. It depends how people think. If we see the housing market in Hong-King for example, the onebedroom condo which was about 100K ten years ago, now it is worth over one million!
Similar things might happen in Toronto too. Another thing to think about that the supply of condos is more that its current demand in Toronto area which says as per economic theory that prices will drop.
What do you think?
Please leave your comments and engage in discussions.
Have a cheerful day!
2 replies on “Booming Toronto’s Real Estate – is it a signal before storm or still long way to go?”
Very Good Article. I think it is still a long way to go in Toronto.
What do you think for buying a small condo in downtown?
I think its a good idea to buy a property in GTA, condo near busy intersections where shopping mall, school, medical etc are near by walking distance. ROI on condos are relatively lower than houses (ROI, detached house >> semi-detached house >> townhouse >> condo). However condos offer best class luxury, convenience, security and low maintenance. As per your budget you may consider buying a small property in Toronto area. I would definitely recommend it.