Condo Rentals in the GTA rise 20.3 per cent in the second quarter


The real estate market in the GTA is becoming even hotter with condo rentals showing positive signs that the limited supply of units for sale and the widening price gap between high rise & low rise homes is giving room for much gains in the condo rental market. From an industry perspective, 80% of new condos purchased in the GTA are purchased by investors. So technically, investors are rapidly filling the housing void by providing housing to millions of people that would love to own but can’t afford to own or just love to rent. There’s never been a better time to be an investor than now especially as relates to pre-construction investing.

There were 8,821 condo apartments rented through the MLS system in the second quarter of 2015, a 20.3 per cent rise over 2014. According to the data the Toronto Real Estate Board (TREB) published Friday, the amount of condos listed for rent outpaced those rented out: there were 15,323 listings in a total, an annual increase of 23 per cent.

Together, one-bedroom and two-bedroom apartments made up 94 per cent of all rental transactions. Both suite types saw an increase in rental prices. The average rent for a one-bedroom condo rose 1.5 per cent to $1,608. Two-bedroom condo apartments saw an increase of 4.5 per cent to $2,239. (Investor KeyPoint)

“Growth in average rents is generally impacted by both market conditions and the type and size of units rented from one period to the next. Both of these factors played into rent increases over the past year, but the bottom line is that despite robust listings growth, strong renter demand has provided a firm foundation for rents,” said Jason Mercer, TREB’s Director of Market Analysis.

The City of Toronto accounted for 81.1 per cent of all the units rented out in the region. Rental prices for condo apartments were slightly higher here, with the average for a one-bedroom unit coming to $1,642 and a two-bedroom suite seeing an average price of $2,361.

The busiest part of the city for transactions was the C01 district, which is home to such vertical neighborhoods as City Place, Liberty Village, University and the west end Waterfront. The district counted 2,931 condo apartment leases in the second quarter and 4,924 listings. To put that into perspective, it made up about 33 per cent of all condo rentals in the GTA. Here, the average rental price for a one-bedroom condo in the second quarter was $1,749, while a two-bedroom unit typically went for $2,639.

The only district to come close to the numbers seen in C01 was its neighbor, C08, which is known as the Downtown Eastside. It’s home to neighborhoods such as Corktown, the Distillery District, Regent Park and the Church-Yonge Corridor. It saw 865 condo rentals in the second quarter and 1,581 listings in total. Rental prices were only slightly less than those seen in C01: a one-bedroom unit averaged $1,709, while a two-bedroom suite averaged $2,425. Source: TREB&Buzzbuzzhomes.

The concept of demand and supply makes it easy for investors that buy in highly valued and profitable neighborhoods to create positive cash flow from their investments from day one. The demand for rental units is not going away which is the reason why investors are motivated to invest today. There are new projects offering great value that will be launched this fall. The main one being Daniels Waterfront Lighthouse Tower. This is one prime project where investors can be guaranteed positive cash flow on their investment from day one. (Stay tuned for more information on this project)

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