Are condos nonetheless an excellent funding?
In line with a brand new survey by Charges.ca, about 30 per cent of Canadians say condos, as soon as seen as an excellent funding, not maintain that very same enchantment.
The survey of 1,568 Canadians additionally discovered that simply 11 per cent say they might purchase a condominium as an funding, whereas 57 per cent mentioned they might not purchase a condominium for any cause.
This was the primary time Charges.ca commissioned the survey, so the group couldn’t present historic information for comparisons.
“Investor confidence has positively softened,” Kevin Wong, a mortgage agent at Swivel Mortgage Group Inc. in Ontario, mentioned within the report.
“A few of my investor shoppers are promoting properties and reallocating their funds to different investments, just like the inventory market or high-growth areas like Alberta.”
Charges.ca notes that prime stock ranges are additionally pushing costs down, which means whereas patrons might need a better time entering into the condominium market, sellers could also be grappling with oversupply.
In line with Statistics Canada, two in 5 condominium residences in 5 provinces, together with Ontario and British Columbia, had been used as an funding property between 2016 and 2020.
Get breaking Nationwide information
For information impacting Canada and world wide, join breaking information alerts delivered on to you once they occur.
The company says this was, partly, as a result of affordability of condos in comparison with properties for these eager to put money into actual property and change into landlords. It says that greater than half of occupied “dwellings” in downtown Toronto and Vancouver had been condos, with greater than half of them rented.
However the slowing rental market has additionally posed a priority, Charges.ca notes, as condominium buyers face increased prices from property tax and upkeep charges.
Leases.ca famous in its latest report that the common ask for lease in March has decreased nationally by 2.8 per cent to a mean of $2,119, making it tougher for landlords to interrupt even on these elevated prices.
The numbers are in tune with what the Canadian Real Estate Association forecast for the housing market earlier this month, which confirmed uncertainty from U.S. President Donald Trump’s tariffs is inflicting costs and demand to plummet.
On the time, CREA senior economist Shaun Cathcart mentioned in an interview that the housing market had gone from a “slam dunk rebound 12 months to treading water at greatest.”
Though condominium demand and curiosity in that market seems to be dropping along with, the survey confirmed 45 per cent of non-homeowners, like youthful Canadians planning to purchase their first house, are nonetheless contemplating a condominium.
That 45 per cent contains higher-income households incomes $100,000 or extra who could also be after coming into the housing market.
The survey discovered 28 per cent of Canadians aged 18 to 34 had been extra prone to consider condos are an excellent funding.
“Condos are the bottom level of entry for many individuals,” Wong mentioned.
The Statistics Canada report echoes this, noting 37.8 per cent of first-time house patrons in B.C. and 16.5 per cent in Ontario purchased a condominium in 2019.
© 2025 World Information, a division of Corus Leisure Inc.
Source link