More than a decade ago, people see Canada as North America’s backwater. America is seen as the superpower. Japan, while inconspicuous, is already making its mark as one of the world’s future countries to be reckoned with. China, on the other hand, is called a sleeping giant, and, just recently, is seen as one of the biggest forces as a real estate and international workforce supplier.
However, this is no longer the case now, especially in its real estate sector. While America’s real estate is not as good as in the previous years, Toronto’s real estate experienced a surprising increase in 2007. What’s more surprising is the relatively low decline in some sectors of Toronto’s real estate. The positive price growth in Toronto’s properties is also a considerably good mark proving Toronto’s real estate stability.
Because of this, the world’s richest and most powerful are heading to toronto to buy real estate property. In 2007 alone, the price of condominium units has reached the $700 per square foot mark. In previous years, a high-end unit would cost $500 per square foot. Now, it can cost up to $1500. This is because investors see the real estate sector of the United States as unstable due to last year’s crisis. China, while booming, is still risky and will continue to be risky for the next couple of years. Toronto, therefore, is one of the most stable locations in the country.
Agents and firms have mentioned that famous and rich people who would normally go to countries like America take their business to Toronto. Despite the price difference, toronto is no longer seen as America’s backwater; it is now on the real estate spotlight. real estate mogul Donald Trump expressed surprise that a $5,000 per square for unit in New York would sell for only $1,500 per square foot in Toronto. He said It was “a little bit wild” that in a great city like Toronto has lower priced real estate properties.
Among Toronto’s real estate market are the citizens who benefited from the country’s good economic standing. However, among those who are primary buyers of Toronto properties are rich foreigners, who could purchase expensive condo units. Foreigners are among those purchase units which cost $1 million to $10 million.
Investors have also set their sites on Toronto. A Ritz-Carlton hotel, a famous luxury hotel, is set to be finished by 2009. As early as 2007, it has already attracted interest from Ireland, Singapore, London, and Australia. The units in the much-publicized Trump Tower condominiums, to be completed by 2010, are almost sold out.
This foreign interest can only be good to Toronto’s real estate sector. The number of foreign buyers and investors could help Canada soften a predicted economic decline. Economists suggest the surprising number of foreign parties in the country may have softened the blow in previous years, and not just in the real estate sector. As long as Toronto remains stable, people will continue to put their money on the city, since it is strength and stability that people follow.