Condos for sale in toronto under 250k . Rent in Toronto is also skyrocketing! Rent an apartment with two bedrooms and one living room in the city center for $8000 a month!
According to the latest statistical report of real estate consulting firm Knight Frank (Knight Frank), the hot real estate market in Toronto is not only reflected in skyrocketing property prices, but also leads the world in the rental market last year, with luxury rental prices rising 8%, far more than any major city in the world.
According to Knight Frank’s main rental index, (Prime Rental Index), luxury rents in Toronto rose 8 per cent in the fourth quarter of 2016 compared with the same period in 15 years. The index covers rent changes in 17 major cities around the world and tracks rental markets in each city, with rental prices in the top 5 per cent.
Analysts still attribute the rise in rent prices in Toronto to a lack of supply. Tamil Khan (Taimur Khan), a senior research analyst at Knight Frank, points out that rents in Toronto rose last year, but the number of leases signed fell, reflecting a shortage of supplies.
He added that the price of luxury homes in Toronto rose 15.1 per cent last year, the seventh highest in the world, causing some buyers who had planned to buy independent homes to consider relatively cheap luxury apartments, which led to a further shortage of supply. and reduce the number of apartments available for rent.
He pointed out that the rise in high-end housing rents is not only in Toronto, but also reflects the trend of the broader North American market, because the Trump administration’s policies, such as tax cuts and interest rate increases, will lead to inflation, and its impact may not be limited to the United States. it may spread to Canada, resulting in higher interest rates on both sides, higher mortgage costs, and high interest rates will have a negative impact on market affordability. This process may lead to an increase in demand for rental housing, as potential buyers choose to rent first.
With regard to the report on the price index of the luxury rental market, Hong ideal, a local real estate agent, believes that the definition of luxury rental in the report is relatively vague and does not clearly specify the lower limit of luxury rental prices. According to her search for rent prices in Toronto, there are up to C $8000 a month for two-bedroom apartments in the downtown luxury apartment market, and there are more than 200 apartments renting more than $5000 a month.
She analyzed that the price increase in the Toronto rental market was related to the increase in the property market as a whole. The madness of property prices makes some people choose to rent a house. In addition, she also pointed out that another reason for the tight supply in the rental market is that Ontario’s lease laws tend to protect the rights and interests of tenants, so that homeowners do not dare to rent out their houses easily.