When it comes to a potential real estate bubble in Toronto, the city’s developers vehemently disagree with most of the studies out there predicting doom and gloom for North America’s number one condo market. A panel of experts, including representatives from Liberty Developments, Tridel Corporation, CentreCourt Developments, Freed Developments, Canderel Residential, Menkes, and Empire Communities tell Ryan Starr of the Toronto Star that the pundits at The Economics and firms like Merrill Lynch, are simply not familiar enough with the Toronto Condo market to make any kind of sound judgement.
“Bad news sells papers better than good news,” says Mimi Ng, VP of sales for Menkes. “They don’t know the nuances of this industry”, suggests Jim Ritchie, VP for Tridel. Paul Golini of Empire Communities takes it one step further, calling the many reports predicting a real estate bubble in the city nothing but “fear mongering”.
They point to low interest rates as well as the absence of purpose-built rental buildings in the market as the main driving factors for demand for new condo units in the city. Andrew Hoffman, president of CentreCourt Developments also points out to the immigration policy which plays a major role in the housing market.
As for the coming year, the panel predicts a year with over 20,000 condos units sold, smaller units in the downtown core and larger ones in the 905 area, and many buildings which will combine retail space with residential units.
source: Toronto Star