Pre-COVID real estate sector was one of the most profitable ones in Toronto, nowadays, is no longer a viable business. Market for condos has shifted dramatically with the pandemic. With fewer people needing to work downtown, reduced numbers of foreign students needing accommodation, and almost no new immigration or foreign tourism to fuel short-term rentals. People that had invest in real estate in the city now face the challenging consequences.
Condos owners are desperate. What before seemed as a safe investment now has become a nightmare. Selling is not an option, due to the fact that there is almost no buyer interest in the properties at the moment.
The Toronto real estate consulting firm Urbanation Inc. reported that the total number of new condominium apartment sales in the Greater Toronto Area increased 30 per cent. This shift in activity is expected to continue as buyers gravitate to less expensive markets while the downtown area faces supply challenges in the near term. The market will continue to face challenges heading into 2021 from restrained demand caused by COVID-19 and elevated supply levels.
Investors should not to expect the returns they had counted on. Condo owners have to adjust their price demands in order to lease.