With condo sales skyrocketing in Canada’s largest housing markets, many are looking to invest in pre-construction units. But realtors say there are a few crucial factors to consider before investing in a pre-build.
Canadians occupied more than 1.9 million condominiums in 2016, according to data gathered in Statistics Canada’s last census. The tight supply and high demand for condos, especially downtown Toronto and Vancouver, is inflating ownership and rent costs, according to market analysts at Urbanation. Resale condo prices soared in the last three years to around $1,000 per sq. ft. in central Toronto and $1,345 per sq. ft. in downtown Vancouver, according to a national survey conducted by Century 21 Canada in 2018.
The rising costs of existing or resale condos created a surge in the number of pre-construction condos sold in 2017-18 in Toronto, with almost 60,000 deals, according to Shaun Hildebrand, president of Urbanation Inc.
The new demand for pre-construction condos contributed to an increase in the number of construction projects across Canada, with 4,031 starts in February of this year, according to Statistics Canada. The number of condo construction starts makes the pre-construction condo market one of the most popular real estate options around for individuals looking to allocate money with the future expectation of a profit, according to Hildebrand.
However, realtors say there are many factors to consider before investing your money in a pre-construction condo