“[Micro-condos] are becoming more common, just simply because of the population,” David Francisco, a Realtor with Condos.ca, told CREW
's sister publication, REPMAG.ca
. “As more immigrants come in, they’re more used to smaller places. Someone living in Hong Kong or India, they don’t mind smaller places.”
At its Housing Outlook Conference in November, the Canada Mortgage and Housing Corporation said increased immigration, especially in larger cities like Toronto
, will continue to put upward pressure on the rental market's demand for condos.
Faced with that demand, builders are increasingly choosing designs that maximize space. That means having more lower-priced, micro-sized units in a building, increasing their profit.
“As more people come to Toronto
, I think the price will be the competing factor, as new [buyers] try to get into the real estate market,” said Francisco, adding that not all buyers will be open to the concept.
“It definitely caters only to certain people,” he added. “It’s a micro-organism of a buyer. There are very few people who want to live in 20-by-20 square feet.”
But Freedom Malhotra, a sales representative at Condo Planet, told CREW in November 2014
that it is becoming increasingly difficult to finance small condos, particularly those smaller than 600 square feet.
In fact, according to Malhotra, many condos are not even being appraised at the value investors purchased them for.
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Investors looking for the next trend in the condo market may need to squint: micro-condos are set to take Canada’s densely populated cities by storm.