The Toronto condo market finally hit this crazy milestone
TRANSCRIPT
998, 999, 1,000. All right. We have officially hit, $1,000 per square foot for the downtown Toronto condo market. I don’t know if you heard the news this week and saw my tweets and Facebook updates about that, but it’s a big day in the Toronto condo market. Officially, the downtown resale market is now $1,000 per square foot. If you’ve been a condo investor for the past few years, this is cause for celebration. Congrats to you if you’ve been buying at 400, 500, 600, 7, 8, 900 dollars per square foot, and now the average for the entire downtown is over $1,000 per square foot.
A lot of people didn’t see this day actually ever coming, let alone coming so fast, especially when just a couple of years ago, we were at around 600, 700 bucks a square foot, and now here we are today.
A few things I wanted to give to you as a condo investor, what do you take from this, where do we go from here. Number one, of course, is it’s just an average, an average for the whole downtown, so take it with a grain of salt. Don’t read too much into average numbers. Every investment opportunity needs to be evaluated on its own merits, its own building, its own suite type, and its own specific location that it’s in. This average of 1,000, it includes buildings that are selling at over $1,300 a square foot and buildings that are selling as low as 5, 600 dollars a square foot. It’s just an average, but it gives us an idea of what’s happening in the market.
The other thing is it’s interesting that it took about 45 years for us to get here today to $1,000 per square foot. When you think about the first condos that were built in Toronto way back in the early ’70s, it’s been about 45 years of the condo market going essentially from zero to $1,000 per square foot. I can tell you that the journey from 1,000 to $2,000 per square foot is going to be a lot faster than that. It’s going to happen in a fraction of that time. Probably some time in the next five to 10 years, we’re going to be at $2,000 a square foot. Interesting.
Finally, cashflow. Cashflow at these kind of numbers, it might seem impossible, it might seem like we’ll never see cashflow again, but the good news is rental market is still also doing very well, growing at a very fast pace. We’re at $4 a square foot now, another big monument for the average downtown. Monumental moment we just hit recently as well. If the current pace continues, believe it or not, we’re going to be at $5 a square foot, $6 a square foot in no time at all.
So, continue to invest, continue to prosper. I hope you enjoyed this video. Go ahead and share it with somebody that you know who might enjoy it. Until next time, happy investing.
