Optimism and confidence in the Toronto and Vancouver condo markets remain strong, with a new CMHC survey revealing 55 per cent of investors anticipate value gains this year.
This is a rise on the 48 per cent who said the same in response to CMHC’s 2013 survey.
The 2014 Condominium Owners Survey (COS), which was published Friday, also found that confidence is significantly higher in Toronto than it is in Vancouver, at 64 per cent and 42 per cent, respectively.
It should be noted, however, that the polling took place before the brunt of the oil shock took hold, which has had a muted effect on both the Toronto and Vancouver economies.
Among respondents, 54 per cent bought their last secondary condo unit for rental income, though that figure rose to nearly 80 per cent among investors whose last purchased unit was rented out at the time they responded to the survey.
Slightly over half (52 per cent) of condo investors said they anticipate holding their last secondary unit for more than five years, though this long-term investment approach was more popular among respondents in 2013, with 58 per cent saying the same.
“Our results show that most COS investors are in the market for the long term and expect to keep their last purchased secondary unit for more than five years,” said Robyn Adamache, CMHC principal market analyst for Vancouver. “Many have had their last unit for six years or longer.”
While respondents do expect the value of their investment properties
to increase, 90 per cent of respondents don’t anticipate purchasing more units within the next year; 89 per cent in Toronto and 94 per cent in Vancouver.