The 2019 Emerging Trends in Real Estate report by professional services network PwC revealed that stricter mortgage rules, rising rates and speculation taxes have yet to significantly affect the condo market, despite pushing residential real estate prices lower.
From housing starts to price growth, as well as demand, the condominium category saw positive results.
In a Canada Mortgage and Housing Corporation (CMHC) report, it was stated that residential construction starts across the country increased almost 30% in June 2018 to a yearly pace of 248,000 units because of condominiums. In addition, over the last ten years, the majority of markets that are being monitored registered a hike in under-construction condo inventory. The gains even stood at 35% since 2007.
The Bank of Canada also highlighted that values for condominiums have continued to increase rapidly in specific markets.
In terms of public reception, PwC pointed out there has been a change of preference, with people opting for multi-family construction, including condos, in Canada since 2007. In 2017, three out of every four homes constructed were multi-family units, compared to 65% the decade before.
It was even found that while consumers are still interested in single-family homes, government policy around densification and intensification in cities led the rise of condos.
Finally, it was noted that demand for this home type will remain high provided that the population growth and economic expansion will continue, as well as house prices continue to be in the unaffordable territory.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate