Why Toronto’s Real Estate Prices Are In Line With Other World Cities
Do Toronto’s real estate prices make sense? Furthermore, are they on par with other international urban cities? Turns out - they do make sense and they are on par with the rest of of the world! It may seem as though Torontonians pay more for their property than the rest of Canada, but Toronto pricing is actually in line with other comparable locations.
Foreign capital doesn’t drive Toronto’s market, Canadians do
According to Mark Renzoni, the president of global commercial real estate powerhouse CBRE, Toronto real estate prices are as fair and balanced as other top world cities like London, Hong Kong and New York. While some real estate markets are driven by foreign capital (Vancouver, anyone?) Toronto isn’t one of those places. Unlike some places, Toronto’s market is driven by actual Canadians who are first-time property owners. The reason for this is that the people who live in the city and surrounding areas want to invest in their neighbourhood. Instead of moving away from the city they grew up in, they’re staying put and buying homes in residential areas. Torontonians are willing to invest in their city (and the GTA) because they trust the builders, the neighbourhoods and their neighbours.
Condos for everyone!
Even though Toronto real estate prices are lower than other global cities (looking at you Sydney, and you San Francisco!), condos are reasonably priced and balanced in comparison. Furthermore, buying in a condo in Toronto is actually an investment because the marketplace is driven by the fundamental concept of supply and demand. People want a place to live and condos are supplied to fulfill that demand. In other major global cities, the prices are astronomical because there’s demand, but not enough supply.
The price of transit
The prices aren’t balanced in other international cities which is why the prices are outrageous. In Toronto the prices may seem outrageous but they’re not. Plus, what we don’t pay in Toronto real estate prices, we make up for in transit prices. Transit prices in Toronto are among the highest on the planet, so if you’re going to complain about anything to your local government, make that your core issue.
Please contact us to help you navigate Toronto real estate prices. Although, they may seem at times like they’re too high, prices are in line with other world cities.