Toronto’s condo market is booming however along with the positives have come some negatives. According to recent data, approximately half of Toronto’s newest condos this past year have been bought as investment properties and roughly half of them are losing money. Combine this with the instability of last year’s implementation of new real estate rules across Ontario, it’s been a struggle for buyers and sellers alike who have faced these new challenges.
It’s been widely publicized that there are many Toronto neighborhoods that have been negatively affected in the past year. Liberty Village has been one of areas that you can say has been somewhat protected. Unlike other regions of Toronto, Liberty Village’s condo developments have been able to maintain their price growth as more Torontonians and citizens from across the world have sought to move into Toronto’s west end. Compared to other neighborhoods, Liberty Village continues to benefit from strong investment demand not only from people looking for a place to live but people looking for a place to work as well. The small business community in Liberty Village continues to grow yearly and as more people are being brought to the area, including surrounding neighborhoods such as Queen West and King West, this has meant no growth slow-down.
Liberty Village has also benefited from assigned condo values that have been steady in the face of other neighborhoods’ developments which some have accused of being built more from speculation than something real. The growing difficulty of buying real estate in Toronto has also been something of a positive for Liberty Village and those interested in its properties. The government-mandated mortgage stress tests and re-assessment of property values in Toronto has meant instability and uncertainty for those interested in buying property. As detached, semi-detached, and townhouses continue to have million-dollar and multi-million dollar values, condo units priced anywhere from $350,000 to $1 million have been far more attractive to first-time buyers. Needless to say, Liberty Village is filled with units like these. As development continues, there will soon be more of these type of units to browse.
Evidently, there has been much made about the falling value of real estate in Toronto. For those that don’t live here in Toronto, they see headlines like, “Home Sales down by 40 Percent” and think that all city real estate has been plunged into darkness. For those of us living here, we know that’s not really been the case. The detached housing market in Toronto is experiencing its fair share of trouble, yes, however Toronto’s condo market has maintained growth – even if it may have slowed down a little bit. Liberty Village is a neighborhood that has been firmly built on trendy Toronto condo developments and as a community not built on detached or semi-detached housing, it’s enjoyed much stability.
That said, some condo developments have lost money. That’s no secret. A recent report published by CIBC suggests that 48 percent of condos built in 2017 were purchased by investors and of these, 44 percent maintain a negative cash flow – including a third that are losing more than $1,000 every month. These are some big negatives and something definitely worth thinking about when browsing the collection of Toronto condos on the market today.
Despite the issues which are highlighted in these numbers, Liberty Village has unsurprisingly remained strong. Those who bought condos prior to 2017 are still seeing sizeable annual gains on value. Also, if the average Liberty Village condo owner were to sell today, they would see a large gain. Though growth may have slowed overall, Liberty Village continues to see new condo development planning and expansion commitments that continue to create excitement among residents and those seeking to move into the west end.
All in all, Liberty Village has benefited from its trendy City location, a high demand from those coming to the neighborhood from inside and outside Toronto, and a strong growing collection of condo units.
For those that are new to Toronto real estate investing and/or who are seeking to buy a condo, Liberty Village comes with a healthy growth rate and a strong history of value gains. Though there’s never a guarantee, facts are facts and Liberty Village is expected to continue to hold strong for the foreseeable future – even in the face of the numbers published.
If you’re considering a move to Liberty Village, be sure to check out our Liberty Village Condo page for the latest listings.