In the last decade the real estate investors in Toronto and GTA used condos as a operational enterprise or as a pension plan, or both.
The increasing discrepancy between ever rising condo’s prices and Toronto renter’s budget put a stop on the rental prices increase This will generates 3 major consequences:
- In a 2-3 years span the condo prices increase will align with inflation . We will still expect an cumulative increase in prices in the next 2 years between 6-9%
- The rental prices will reach a plateau over the next 2 years.
- In the next 2 years, high condo carrying cost combined with new condos supply ( condos under construction or approval phase ) will slow down the condo resale prices.
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