Asian buyers propel Toronto condo market

Asian investors continue to drive record condominium development in Toronto, turning the city into one of the finest condominium markets in North America.

Although the overall housing market is expected to slow next year, Canada Mortgage and Housing Corporation, the government regulatory agency, is predicting record apartment construction over the next 12 months.

Real estate consultant Barry Lyon points to Asian investors in particular to explain the health of the market in Toronto, where between 20 per cent and 25 per cent of all units are bought by investors.

Mr Lyon said that probably three quarters of foreign investors were from Asia - Hong Kong and the mainland, as well as Taiwan and Singapore - and they had brought stability to the apartment market.

He said Asian investors appealed to developers as they were not 'flippers' who bought units and sold them quickly in the hope of fast profit, a practice that was unsettling for the rest of the market.

The appeal of Toronto, Mr Lyon said, was that there were lots of apartment blocks available, ranging from affordable to super-luxury, and they were available in the central city as well as in the suburbs.

In contrast, Vancouver, another favourite market for Asian investors, is running short of inner-city land for condominiums, with the result that prices are surging.