Apartment Values Spike
Why is it so tough to buy a cheap apartment building? (We haven't checked Craigslist yet, but we'll call that a last resort.) You can thank thelow cost of borrowing, population growth downtown, and Canadas reputation post-recession as a safe haven for investment.
Federation of Rental Housing Providers of Ontario CEO Vince Brescia says that after the international financial crisis, "Canada became seen around the world as a place of stability."The sale last week of Maple Leaf Quay for just north of $150M is just one example. Another driver: more young people moving into the downtown core. The Canadian Mortgage and Housing Corp reports a vacancy of 1.7% for Toronto apartments at the end of 2012. Another factor in the bump, Vince says, has been the onset of more active REITs/REOCs and ensuing investments and improvements in individual properties, including how they're managed.
