Whats in store for a Toronto Condo Owner?

We’re not in Kansas anymore, Toto.

The Toronto condo market isn’t what it was a year ago. And if you’re a condo owner in the downtown core of the city, it’s something you should be aware of, particularly if you’re interested in selling your property in the near future. Having said that, we’ve got the silver lining for you.

What’s happening in the market right now 

The Toronto condo market is definitely oversupplied. But there is an important question that must be asked in order to gain a clearer picture: what part of the market is saturated? The condominium real estate market in the city can be broken down in a number of ways including location, square footage and bedroom number.

Right now, the specific part of the market that is oversupplied is the one that includes small 1-bedroom units and small 2-bedroom units. Notice the word “small”. These are the units that were once highly occupied by travelers, students, temporarily relocated businesspeople, first-time homeowners, and individuals and small families who needed to be close to their city jobs. 

The pandemic has changed all that.

Why the oversupply?

The Toronto condo market’s present challenges were precipitated by a slowdown in the rental market. This was a result of the repercussions of COVID-19:  

• Big drop in immigration
• Fewer students living in the city
• People taking advantage of historically-low borrowing rates to move into larger spaces and work from home
• Less short-term rentals through sites like Airbnb because of low tourism and business travel, not to mention the onset of new restrictive rules for short-term rentals in the city

Units are vacant, rental prices have dropped and many condo investment owners have sold their properties in a relatively short period of time.

Luxury condos are a different story

Here’s the silver lining.

If you own a luxury condo, a highly unique condo unit, or a condo with a large and spacious floorplan, you’re part of a segment of the market that is still selling at a good rate.

This is because these types of condominium homes do not fall into the categories mentioned above, and therefore sit outside the norm of what has become Toronto’s oversupplied condo market.

What you can do to ensure a successful sale

No matter what the unit type, if you’re planning to sell your condo, there are a few things you can do to increase your chances of selling at a top price within a reasonable period of time in our current market. 

• Listing preparation.

Absolutely crucial, in my opinion. The right staging and accessorizing can be the difference between a stale looking condo and a stunning space with every room put to optimal use. 

• Online presentation.

Pictures are everything. And incredible quality pictures make the world of difference, making your property stand out from the rest instantaneously. (In my experience, flash photography trumps HDR photography every time.) These days, buyers are online first, so make your initial impression an unforgettable one.

• International exposure.

Even with strict travel rules in place, investors and immigrants overseas are looking for opportunities – particularly for higher-end properties. Toronto is a world-class city. In “normal times”, immigration is strong and you better believe the government will do everything it can to increase immigration numbers at the end of this pandemic.

If you’re considering the sale of your condominium, or even if it’s only been a fleeting thought in your mind thus far, I’d be happy to talk it over with you.

Get in touch.

Anytime.