A leading Toronto developer is warning investors to stop following the crowd and avail themselves of opportunities in the so-called troubled condo market.
Peter Freed, known as the ‘King of King West’ in Toronto, told Canadian Real Estate Wealth magazine that one of the biggest mistakes investors make today is playing the waiting game to see how their peers act in the market.
“When the market is on fire, there is a line of over 20 people waiting to buy properties. But when things are slower and values drop, there is no excitement at buying. That always surprises me,” he explains.
Currently developing a 1,500 unit complex at Yonge and Eglinton in the GTA, Freed also slams international claims that the property market in Canada is over-valued.
“I still think Toronto is undervalued. You can still buy a well-located new condo in a great neighbourhood for $550 and $650 per sq. ft.,” he says. “I don’t think there are any other cities of Toronto size and quality comparable to that. They are in the $750 to $1,000 per sq. ft. and more. I see in the next three to five years, the average condo costing $750 to $800 per sq. ft. in downtown Toronto in a good neighbourhood.”
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