Smaller condos have been the trend in Toronto for the past one or two years, but impact of these units will be felt in days to come because most apartment buildings take three to five years to build and make prepared for purchasers to move in.
According to Toronto research firm Urbanation, more than 65 percent of new apartment launches in the GTA in 2012 have been one bedroom or less. That’s the highest proportion of smaller units ever.
Canada’s condo boom in its major towns has been driven by price, and developers can charge less if the units are smaller. Another trend is eliminating parking spaces. Some developments don’t offer parking with any of the units, although they can be available to be purchased separately.
After a decade-long boom, property markets in Vancouver and Toronto have slowed in recent months and some analysts believe that may lead to a trend toward larger units. Since many times developments are found beside major public transit facilities, it’s expected many residents will not need a vehicle.
A senior analyst with Canada Mortgage and Housing Company. ( CMHC ) says the drop in sales is causing some developers to put planned projects on hold, and he thinks that may be a nice thing. He says there are currently a record number of apartments being built in Toronto – about Fifty thousand. “This is going to decelerate supply pressures and it’s healthy for the long-term steadiness of the market,” he is saying. The city’s vacancy rate is low because only a few new rental units have been built in the last one or two years, and the number of renters searching for a apartment is expected to increase.
Though there is concern the Toronto market could be oversupplied, instead selling their units, many Toronto condo owners looking for a booming rental market.