First it was MICRO CONDOS as the new sonic BOOM in Toronto. But wait, now it’s Rental Apartments that are trending! Even apartment REITS are outperforming other types of REITS.
In fact, for the first time is over 40 years, developers are starting to build very sexy rental buildings with all the features and benefits of a new condo project. Some of these luxe rental buildings will include concierge, restaurant, gym, rooftop gardens and other “condo-like” amenities. This is all good news as Toronto is well known for its commitment to balancing rental product with ownership of freehold and condo units. According to informed sources, 21 rental apartment projects underway in the city, as we speak. Currently, vacancy rates are under 2 %, so we don’t expect demand will be satisfied yet.
This new rental product coming on stream will offset the affordability issues for many people who need time to save more to qualify for ownership. It also affords a slight “pause” in the market so that condo supply coming on stream in the next year or so can be absorbed. Condo development is still cyclical and we’re coming from an environment where you announced the project and you sold it out in two days and you just built it out,” Corrado Russo, managing director of investments at Timbercreek, said in the interview last month.
Are you looking to invest in property? Now is certainly the time! And I am certainly interested in helping you purchase choice rental units! Call, text, email, tweet… my office is always open!