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The Statistics Report Made by CMHC on Vancouver and Toronto Condo Markets
Condominiums are playing a vital role when it comes to the Canadian housing market. It is an important factor since they are accounted for in the market’s increasing housing supply share. Aside from this, such properties are also addressing the needs of a range of clientele. For instance, there are home buyers. To them, condominiums are more affordable for a housing option. For empty nesters, these properties are great options for them since these are type of housing units that entails lower maintenance. It also serves as an investment vehicle for a number of condominium owners.
These are just some of the reasons that make condominium owners very significant in Canada’s major condo markets, which are Toronto and Vancouver. To enable better understanding of its role and activity in these two markets, CMHC started conducting the Condominium Owner Survey.
What’s Inside the Released Statistic Report on Canada’s 2 Major Condo Markets
CMHC stands for Canadian Mortgage and Housing Corporation. They just released a report that will certainly gain the interest of many condo investors and owners in Canada. The data presented on the report looked into the nature of condominium purchasing as well as sales and investment on Toronto and Vancouver condo markets. It is the first time that CMHC published such survey results regarding this aspect.
As what Bloomberg News stated, the survey also included a list of individuals who purchased at least one condo between August and September in the year 2013. Some of the figures included on the survey report are:
- There were about 17.1% of interviewed condo owners who invested in their condominium. 82.9% of these owners are now living in the property.
- There is close to 17% of investors who were renting some of the units.
- 4% of the respondents from the survey stated that they do plan to keep their condominium unit for more than 5 years. 17.9% of the rest of the respondents only plan to keep the unit for only 2 to 5 years. About 7.6% plan to stay for not more than 2 years.
- 12% of the respondents also stated that they planned on selling their condo within the same year.
- About 42.1% of the surveyed owners stated that they did not have a mortgage on this property of them, which is only their secondary.
All these figures were featured on the article made by Toronto Stars regarding the survey. In conclusion to this, the Star along with some other outlets noted that there are certain limitations on what the study is trying to tell.
For one, it does not include purchases made on the condominiums for sale in Toronto, specifically those that are under pre-construction developments and are occupied. Second, the study did not indicate the amount of investment made on these condos that were from offshore buyers.
A reporter from the Financial Post believed that the foreign investment made in Vancouver and Toronto’s condo market is likely about 5% of total. It is true that there were not any discussion made concerning foreign investors in these condo markets, but the reporter stated that observers might be surprised of the result once the data in the survey are combined with other information like the survey on the secondary rental market. That is because only a small portion of offshore investors is present in their condo space in Toronto and Vancouver.
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