Toronto Real Estate Still Has Potential for Appreciation

Urban and apartment markets still have potential for appreciation

It is recommended that potential buyers consider the neighborhoods in downtown Toronto, as housing prices in these areas have experienced relatively modest growth.

Foreign investment pushes up the price of luxury towers

In the first half of this year, sales of homes worth 4 million Canadian dollars and above soared 250% year-on-year. In the past month alone, sales of homes worth 4 million Canadian dollars and above in Toronto have surged 78% from a year ago.

Townhouse price growth is more stable

The detached house and condominium market often have their own operating cycles. Although the two are sometimes in step, but in more cases, the trend is completely opposite. The performance during the COVID-19 pandemic is the best example. The market for townhouses and semi-detached houses has fluctuated between the two markets.

Is there a risk of bubbles in the property market?

In a recent study by UBS, Toronto was listed as one of the three cities with the highest risk of a real estate bubble. The remaining two are Hong Kong and Frankfurt. However, UBS’s definition of a real estate bubble is not as severe as it sounds, mainly referring to the possibility of housing prices falling.

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