Like a lot of major cities in North America, Toronto is growing. And even though city officials are staunchly anti-sprawl, that doesn’t mean new construction will come to a halt this year. There are a number of recent events that will influence how developments will look this year, so see what’s going on before strategizing your own game plan.
The recent demand for new luxury housing primarily stems from Canadians, but about 15% of luxury buyers are bidding from outside countries. This trend is likely to continue, though the market may see more foreign interest with the introduction of the stress test for this year. Home prices are currently down about 10% from May of 2017, with some speculating that this downturn will reduce the need for new construction. However, with the potential Amazon grab, it’s not a moment too soon to start planning for a potential upswing.
Toronto homeowners have some trends that are worth noting when it comes to new developments, even if they aren’t very glamorous. Canadians are looking for townhouses or condos that offer a view, or for single-family homes that offer privacy. While fences can always be installed, homeowners are looking for real estate that comes with a built-in barrier. Buyers favor roomy closets, convenient upstairs laundry rooms, and formal dining rooms. Fireplaces are still somewhat in-demand but don’t quite have the same allure as they once did. And as always, people want enough room to store their two cars, three snowmobiles, and six pairs of skis. Interested parties can expect to see new construction rise to meet these demands in 2018.
Between regulations and increased financial demands from home buyers, there isn’t a lot of new construction going on at the current moment. However, some experts believe that 2018 will be the year of the pre-construction condo. While 2017 may have ended with a bit of a whimper, no one can deny that 2018 started with a huge bang. Developers are going to want to use any means necessary to continue riding that wave of momentum. Pre-construction condo buyers won’t have to endure the dreaded stress test, where they’ll be asked to prove their income can stand up to interest hikes. The supply and demand curves seem to point rather strongly toward more pre-construction condos for the start of this year.
The government is putting $1.25 billion to give the Port Lands a major makeover in the hopes of creating a future housing area that will open up countless new markets. Once finished, housing in the Port Lands will offer a perfect view of the Toronto skyline while being kept safe from potential flooding with its ingenious engineering. Off of Cherry Street and close to Cherry Beach, the 20 acre park will be built between two and three metres of where it currently stands. By filling in the channels of water, the park will protect homeowners in the area from moisture damage or outright flooding. While the park won’t be finished until 2020, the time to invest may be in early 2018.
The developments in Toronto hold a lot of promise for anyone interested in the market, though it may take more than a cursory glance to see both the tangible and potential benefits. Keeping on top of the trends is the best way to capitalize both now and in the future!