Condominiums in the Greater Toronto Area (GTA) have experienced a decline in demand over the past two years. The covid-19 pandemic caused many people to move to the suburbs to properties that offer more space. But experts estimate that this 2022 Toronto New Condos will experience a boom in demand and growth in prices.

While the price of Toronto New Condos is estimated at $743,000, the price of a townhouse is around $1.43 million and that of a single-family home is $1.8 million. [2] To this, we must add that despite the new outbreak, the covid-19 pandemic seems to be under control, so the confinement will not be as rigorous and people will be able to enjoy common areas more.

Another predictable reason for the growth of Toronto New Condos is the saturation of the single-family home market. This makes buyers more interested in acquiring condos that offer a better price and various acquired values ​​such as swimming pools or gyms, as well as greater proximity to GTA.

The city itself offers additional interest for the construction and sale of new condominiums. “Ontario and British Columbia, which are among the most expensive real estate markets in Canada, continue to see steady growth in median home prices. The two main urban areas of both provinces, Toronto and Vancouver, had a combined total of 12,000 transactions for November 2021, which constitutes a large part of the total number of Canadian home purchases and sales. The Toronto real estate market saw a 22% increase in median home sales price year over year to $1.16 million, but that’s still not enough to top Vancouver’s median home price of $1.21 million, even with the lowest price increase of 16% year over year in Vancouver.”

This rebound has been observed since the first quarter of last year in which a total of 9,001 new condominium units were sold. 5.5 times more than those sold in the same period of 2020. [4]  Even so, the market for townhouses and single-person homes had higher growth, a trend that is expected to change this year.

Toronto is the commercial and financial center of Canada and one of the most populous cities in North America. This city offers excellent job opportunities, in addition to having an excellent transport system and public services and areas with an active cultural life. In addition, it has a first-class health system and quality education. This makes many people around the world decide to move to the city, this being an excellent opportunity for the construction of Toronto New Condos.

“Further, in the city’s condo market, there are around 2000 complexes currently running in the pre-construction phase with most high-rise condominiums. Contrarily, there are low-rise condos, plus condo townhomes in Toronto market-making downtown core the most suitable place for Toronto pre-construction condominiums.”

Toronto offers the benefits of a large metropolis with much lower condo prices. The value for money when acquiring Toronto New Condos favors the hypothesis of growth in sales and demand that could extend until 2025.

Ontario government policies also favor increasing demand for Toronto New Condos. The government plans to extend the Yonge North metro in Richmond Hill and Markham which will increase the GTA population density.

“The developments are part of the province’s plan to fast-track transit projects in the Greater Toronto Area and reduce urban sprawl by creating mixed-use areas around the transit hubs called “transit-oriented communities (TOCs).” The government is partnering with developers who will foot much of the cost of the infrastructure.

The High Tech subway station TOC will bring 33 towers — some of them 80 stories tall — to the Richmond Hill site north of Highway 407 and east of Yonge Street. The Bridge subway station TOC will bring 34 high-rises to the Markham site just south of Highway 407 and east of Yonge Street.

The developments are expected to bring in about 80,000 new residents overall, according to York Region.”

This growth also represents a challenge for the city. The increase in population in a smaller area makes it necessary to build new infrastructures, such as schools, hospitals, fire departments, and supermarkets, which in turn would increase job offers and new opportunities for residents. This growth has been meticulously designed by urban planners. “We’ve been planning for over a decade,” said York Region Chief Planner Paul Freeman.

Within the Ontario region growth has been uneven. While Brampton’s housing market grew 40% in December 2021 compared to December 2020, Toronto lagged somewhat behind with an annual increase of just 24%.[8] It is expected that by 2022 the growth of the real estate market in Toronto will be greater.

“Prices for condo apartments in Montréal, Ottawa, Toronto, Calgary, Vancouver, and Victoria increased by 10.4% compared to Q3 2019. This growth outpaces the overall average of 7% for all properties types. The biggest increases were seen in Ottawa, where prices have risen by 17% compared to Q2 2019. Toronto is second with year over year increases of 14.1% despite the impact of COVID-19. Even Vancouver, where properties stagnated for 2018 and 2019 due to their Empty Homes Tax and Speculation taxes, is experiencing a revival in its condo market. In contrast, Calgary faced a year over year decrease of 6.2% due in part to falling oil prices.” [9]

Another important element of Toronto New Condos is the interior design. With less space, the style is usually more minimalist. The use of glass in the walls and windows allows better use of lighting. This is an added advantage for people who work from home, a trend that is increasing more and more.

Toronto currently has around 6.3 million permanent residents and the growth figure is increasing between 0.9% and 2.9% each year. Making it one of the fastest-growing cities in the world. The estimate for the next 10 years is that the inhabitants are around 8 million. [10] This population increase makes it necessary to house more people in a smaller space, being Toronto New Condos a good solution.

Returning to the price of Toronto New Condos, the increase in demand that is expected for this year will cause them to increase, but remain below the townhouses and single-family homes, although the latter will experience a sharp decrease in demand. Condominiums are therefore a good investment, both for sellers who will obtain higher sales in a smaller area and for buyers who will be able to obtain a good home at a lower price.