Summary of our COVID-19 PART I Webinar

January 16th, 2021

Toronto Condo Market Outlook During the COVID-19 Pandemic

The Toronto housing market has continued to thrive year-on-year, with the sale of properties rising by 8.5% each year. The effect of the COVID-19 pandemic has become a big concern for many in Toronto as the city has become a major player in the global real estate industry. This is because immigration into the city has exploded; in fact, Toronto is the choice destination for immigrants in North America. In 2018, about 96,000 people moved into Toronto and about 137000 people moved into the GTA overall.

At the time, Toronto was the number one choice for city immigration. Since then, many have expressed concerns about the vulnerability of the Toronto real estate market, as they think it is only a bubble created by a surge. But this is far from the reality; Toronto’s condo and real estate market is a demand and supply market. It is only natural that there is a huge shortage when many people move into a particular city every year. Essentially, the condo demand has outgrown supply, which is why there has been rising prices.

This only means one thing: the Toronto condo and real estate market is one of the safest places to invest, despite the COVID-19 pandemic. Why so?

The percentage of foreign real estate buyers in Toronto is relatively small when compared to the units sold. In 2019, the RBC stated that the city fell short 24,000 units every year while the CMAC projected there was a 32,000-unit shortfall; these numbers literally mean there is an average of 28,000-housing-unit shortfall in Toronto. So, even if migration has halted and immigrants and foreign investors can no longer come in due to the pandemic, Toronto’s real estate and pre-construction market is still a safe investment.

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