Toronto, Vancouver condo owners look to list over next 5 years: CMHC
A growing number of condo investors in Canada’s biggest housing markets are planning to list their units over the next five years, banking on the profits from rising prices to cash out.
A new survey of nearly 42,000 condo owners in Toronto and Vancouver by Canada Mortgage and Housing Corporation found that 52.6 per cent of investors were planning to hold their units for at least five years, down from 58.4 per cent last year. The changes were driven largely by investors in Toronto, where 52 per cent of investors expected to own their unit for at least five years, down from 61 per cent from a year earlier. In Vancouver, the number of investors who said they planned to hold their units for less than two years rose from 8 per cent to 12 per cent.
The shift comes as more investors expect prices to rise, with nearly 55 per cent telling CMHC they expected their unit to increase in value this year, up from 48 per cent last year.
A slightly larger number of investors also reported their units were vacant compared to when CMHC published its first survey of condo investors last August: 7.6 per cent said their units were empty, up from 6.9 per cent last year.
It is the second year that CMHC has surveyed Canada’s two largest condo markets in an attempt to get a better understanding of the explosive growth of investor activity in the housing market.
Most condo owners, 84 per cent, said they used their condo as their primary home, while 16 per cent had bought as investors. A third of those said they were renting their units to relatives, or lived there themselves, while little more than half had put them on the rental market. Most investors owned just one unit, CMHC found. About 18 per cent owned at least two units and nearly 10 per cent owned three or more.
CMHC found substantial differences between people who bought condos as a home and those who bought as an investment. Investors were more likely to have bought their units presale, and more of those lived in Toronto than Vancouver. They put down higher down payments (45 per cent of investors paid 20 per cent or more, compared to 31 per cent of owners), were less likely to have a mortgage, less likely to expect their unit to rise in value, and kept their condos for shorter periods of time (23 per cent of investors said they planned to keep their condo for 10 years or more, compared to nearly half of owners who lived in their unit.)
The survey excluded a large swath of the condo market, including those who owned only one condo unit and lived in it full-time, those who owned two homes but were choosing to live in their condo and rent out their other home, foreign investors, corporate and institutional condo investors, as well as condo investors who owned units in Toronto and Vancouver but didn’t live in those cities. The narrow focus of the survey was due to “survey design and cost considerations,” CMHC said.
A new survey of nearly 42,000 condo owners in Toronto and Vancouver by Canada Mortgage and Housing Corporation found that 52.6 per cent of investors were planning to hold their units for at least five years, down from 58.4 per cent last year. The changes were driven largely by investors in Toronto, where 52 per cent of investors expected to own their unit for at least five years, down from 61 per cent from a year earlier. In Vancouver, the number of investors who said they planned to hold their units for less than two years rose from 8 per cent to 12 per cent.
The shift comes as more investors expect prices to rise, with nearly 55 per cent telling CMHC they expected their unit to increase in value this year, up from 48 per cent last year.
A slightly larger number of investors also reported their units were vacant compared to when CMHC published its first survey of condo investors last August: 7.6 per cent said their units were empty, up from 6.9 per cent last year.
It is the second year that CMHC has surveyed Canada’s two largest condo markets in an attempt to get a better understanding of the explosive growth of investor activity in the housing market.
Most condo owners, 84 per cent, said they used their condo as their primary home, while 16 per cent had bought as investors. A third of those said they were renting their units to relatives, or lived there themselves, while little more than half had put them on the rental market. Most investors owned just one unit, CMHC found. About 18 per cent owned at least two units and nearly 10 per cent owned three or more.
CMHC found substantial differences between people who bought condos as a home and those who bought as an investment. Investors were more likely to have bought their units presale, and more of those lived in Toronto than Vancouver. They put down higher down payments (45 per cent of investors paid 20 per cent or more, compared to 31 per cent of owners), were less likely to have a mortgage, less likely to expect their unit to rise in value, and kept their condos for shorter periods of time (23 per cent of investors said they planned to keep their condo for 10 years or more, compared to nearly half of owners who lived in their unit.)
The survey excluded a large swath of the condo market, including those who owned only one condo unit and lived in it full-time, those who owned two homes but were choosing to live in their condo and rent out their other home, foreign investors, corporate and institutional condo investors, as well as condo investors who owned units in Toronto and Vancouver but didn’t live in those cities. The narrow focus of the survey was due to “survey design and cost considerations,” CMHC said.
No comments:
Post a Comment