The technology sector is helping to boost demand for condos in Waterloo. As companies including Google have opted to make the Ontario city their Canadian home the need for modern housing for employees has intensified. Bloomberg reports on a recent sales event held in Toronto by former Bay Street trader-turned real estate mogul Michael Wekerle attended by around 1600 people where within 3 hours a 250-unit development of condos is sold out and 170 are on the waiting list.
The area has seen a surge in development but despite the demand in the so-called ‘Silicon Valley North’ not everyone is convinced that now is the right time to invest in the market: "The time to get in was two years ago," Deep Sachdev, a Toronto mortgage agent told Bloomberg, "There’s the potential for oversupply if they keep building at this pace, which won’t help rents or prices."
For now, though there are plenty of investors willing to bet on a potential 40 per cent return on their investments with a vacancy rate of just 1.4 per cent according to CMHC, the lowest for 13 years.
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