CONTACT: Vicki Griffiths
Vicbar Marketing Limited
TORONTO – May 17, 2011: Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, today released its inaugural condominium apartment rental market overview for Q1-2011.
“We are excited to introduce this badly needed resource to the Toronto condominium market,” says Ben Myers, Urbanation Executive Vice President and Editor.
The UrbanRental report targets condominium developers, lenders, real estate brokers, investors, and anyone in the rental apartment business. Released quarterly, the rental market overview will provide a wealth of information on the trends and changes in rental rates in the Toronto Census Metropolitan Area (CMA).
“Until now, there has been a real void in the market for comprehensive data about condominium rental units across the CMA, especially on per square foot rental rates,” says Myers. “With the increasing number of small condo units being bought by investors, this report will be essential for anyone who owns and rents a suite.”
Over 50% of new condominiums sold in the Toronto CMA are purchased by investors (buyers who do not intend to occupy their units) based on information compiled by Urbanation. With nearly 18,000 new condominium suites selling annually over the past five years, Urbanation estimates that an additional 7,000 suites will be added to the condominium rental pool annually over the next few years.
Highlights of the inaugural rental market overview show that, among leased condominium apartments in the Toronto CMA, index rents increased by just 0.8 per cent quarterly in the first quarter of 2011, from $2.09 per square foot, to $2.11 per square foot. The average condominium unit leased in Q1-2011 was 800 square feet with an average rent of $1,686 per month.
Because Urbanation expects a record year for condominium apartment registrations in 2011, that additional supply is expected to keep prices from escalating. Index rents are up just 1.1% annually in the rental condominium market in comparison to 3.5% for resale condominiums and 8.4% for new condominiums.
“The price of new and resale condo units in the CMA continues to climb. Using our report, investors can monitor rental trends and figures to determine when and where to make a purchase that will offer the best return on their investment,” says Myers.
Overall, the new UrbanRental report for Q1-2011 shows that demand and the number of leased units in the condominium apartment rental market remain high, while the average days-on-the-market is low. Urbanation predicts the trend going forward will be continued flat rate index rent increases, and that index price appreciation in the new and resale condo market will outpace that of index rents.
Go to www.urbanation.ca/UrbanRental for more details.
- 30 -
Urbanation is Canada’s leading condominium market research company. Since 1981, Urbanation has analyzed the Toronto condominium market, publishing the “industry bible” – Urbanation’s Condominium Market Survey. This quarterly report tracks new, resale and future condominium projects. Urbanation also provides the development community with essential consulting services, which include site and topic specific market studies and surveys.