foreign ownership

Five per cent of new condo sales in the GTA made by foreign investors

Wednesday, November 9, 2016

According to Urbanation Inc.’s first ever survey of new condominium foreign purchasers and investors, five per cent of all sales within projects currently in active development across the Greater Toronto Area (GTA) are from foreign investors, while domestic investors represented 52 per cent of sales.

The survey, which is completed by developers or brokerages representing new condo apartment projects, expanded to include this data in response to the increasing need for more clarity surrounding the role of foreign purchasers in the GTA housing market. Urbanation included the share of units sold to non-resident buyers, as well as domestic investors.

Among projects that indicated a presence of foreign investors, shares of units sold to outside purchasers fell between 1 per cent and 25 per cent. Shares of sales to domestic investors ranged from five per cent to 90 per cent. The highest shares of sales to foreign purchasers and domestic investors were usually found in centrally-located projects in the downtown Toronto area.

“The results of this very important survey show a rather limited role of foreign buyers in the GTA new condo market and a very significant overall share of investors,” said Shaun Hildebrand, Urbanation’s senior vice president, in a press release. “These estimates coincide with the percentages of new condos entering the rental market upon completion, indicating the important role investors play in the GTA housing market.”

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