In real numbers, a record high of 5,315 condominium apartments were rented on the MLS system during the second quarter of 2013, reports Urbanation, a source of information and analysis on the Toronto condominium market. That's up by 20 per cent from the year-ago period, suggestng demand has largely matched the growth in listings. In fact, demand may outstripe that supply, given price escalation just above 4 per cent, bringing the average price per square foot to $2.35, or $1,847 per month.
“The growth in condo rental activity reflects a greater movement of younger households into the core, and a lack of growth in traditional rental supply,” said Shaun Hildebrand, Urbanation’s Senior Vice President. "These results show that in one form or another, demand for condominiums in Toronto remains very stable."
That's good, if surprising, news for condo investors worried about a glut of condo coming on the market and forcing rents down as vacancy rates grow.
The indication is that most condo investors have held their nerve, despite very real concerns about a slowing condo market where prices have nonetheless risen not fallen.
“Most investors are proving to have longer-term intentions by holding onto their units. While rental yields, in general, have come down for new units, many properties continue to achieve strong returns with almost no vacancies” added Hildebrand.
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