Canuck developer: global trend buoys condo market

“There is an interest and demand to live downtown and there was not that interest and demand to live downtown in 1989, 1990," Brad Lamb, head of the eponymous Lamb Development Corp, said Tuesday. “People still wanted to live in the suburbs.”

He was answering concerns about price growth in Toronto's condo market, which keeps going and going and going. At the same time, condo developers across Canada have actually stepped up their collective building spree.

April, in fact, saw a 14% increase in housing starts, driven by condominium construction, according to a CMHC’report released this week.

Economists have called that growth unsustainable, suggesting developers, and , indeed, some lenders, are priming the market for a 15% to 20% price correction.

Some banks have already moved away from lending to condo investors, representing as much as 40% of buyers in that vertical market.

Still, Lamb argues April’s numbers may represent a blip in the pace of construction, which nonetheless remains in line with consumer demand.

Homebuyers continue to flock to Toronto’s downtown core, looking to be at the centre of the action. Developers in others of Canada’s urban centres make the same case for why cranes continue to pop up across their respective skylines.

It’s a whole demographic shift in how people want to live now,” said Lamb, whose firm completed 450 sales last year. "It’s a worldwide trend now: people are living in cities.”

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

COMMENTS

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release

Poll

Should government update pot rules to prohibit growing in rentals?