Toronto real estate is set for another boom in the near future.
Thanks to the city’s flourishing tech sector, Ron Sally believes the city’s condo market is going to catch fire.
“Our tech industry in Toronto is about to explode,” said broker of record and owner of REMAX Millennium Real Estate. “It’s been slowly climbing up the ranks; it hasn’t reached its peak yet but it’s about to come out into the open. It’s currently ranked number two in North America and number four in the world.”
That Toronto’s financial sector is ranked third in North America could also provide a glimpse into what is to come.
“As of 2017, the ranking is number 11 globally for the financial sector,” he continued. “What this means is that in the world, Toronto is the eighth-most livable city and our job sector is going to grow, as well, in the next few years. Toronto’s condo market is undervalued, so whoever can get a piece of Toronto real estate should do it while it’s still available.
“Our transportation system is being improved—the city is changing implementation,” said Sally. “A lot of changes are going to turn this into a global city. Right now everyone knows where Toronto is. We had 28,900 new tech jobs created in Toronto, and that’s more than the San Francisco Bay Area, Seattle and Washington D.C. combined.”
Major players in the tech industry are setting up shop in the city, including Microsoft, Uber, Shopify, Airbnb, and Google Sidewalk Labs. Moreover, a slew of new jobs in the sector will be created and Sally believes that will have an impact on condo valuations, believes Sally.
Coupled with the fact that new tech sector jobs will be created in the years ahead, and the fact that supply already lags well behind demand, Toronto condo valuations are on pace to surge.
“Downtown on King St., condos are selling for $1,500 to $1,600 per square foot; Pemberton is also selling one at $1,200 per square foot,” said Sally. “Things are slowly changing and those who see the big jump coming in the next two or three years understand it’s the same jump we had in 2014 and 2016. We have one million immigrants entering Canada in the next three years.”
Toronto-based Daniel Johanis, a Rock Capital Investments broker, has noticed the influx of tech talent into the city and says it will be good for the city.
“I’ve got three clients right now working in tech, one of whom is in bitcoin, and they found me online. All three are young, under 30, and ready to jump into the market. They’re in the market in the city for the long haul. If we see an influx of people here because jobs are here and they’re looking to settle down, that’s great for the prosperity of the city.”