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Active Rental Market in 2006 -- Rental Market Report

Rental Condominium transactions rose 16 per cent in 2006 to 8,738,in part due to a number of newly completed projects around the Square One Mall in Mississuaga.

For the second year running, activity in the secondary lease market tracked the residential resale home market.  Transactions peaked during the middle portion of the year (3,086 units rented between May and August 2006), with somewhat less activity in the time period leading up to and away from Christmas.

Meanwhile, during the time-frame covered by this edition of the Rental Market Report (September to December 2006), leased transactions rose 15 per cent to 2,686 over the corresponding period in 2005. The average rent for benchmark two-bedroom units was $1,752 per month, almost the same as last year's $1,760 per month.

Condo Apartment rents trended upward compared with the end of 2005 in all categories except two-bedroom units. For example, three bedrooms reached $1,830 per month, a two per cent increase over the $1,795 of 2005. In the case of townhouses, the direction was mixed, with three-bedroom units rising 12 per cent to $1,661 per month but other types falling in price.

Central Area

  • In keeping with recent trends, TREB's Central area saw the vast majority of leased condominium apartment activity during the September to December period, with 1,443 units rented. Of these, 835 were one-bedroom apartments that rented for an average of $1,430 per month, and 530 were two bedroom units that leased for $2,004 per month.
  • The September to December period also saw 54 condominium townhouses rented in the Central districts. Two-bedroom units were the most prevalent type, and these rented for $1,919 per month.

East Area

  • TREB's East area saw 249 condominium apartment rentals during the most recent reporting period. Once again, one and two-bedroom units were the most common. The 93 one-bedroom apartments leased for an average of $1,228 per month, with over one third (39) being leased in the E09 district ($1,134 per month). There were also 126 two-bedroom units transacted, which rented for an average of $1,357 per month. Once again, about a third of these apartments were leased in E09 (40), where they went for an average of $1,418 per month.
  • In comparison to the same period last year, rents were up in three of four categories, with only three-bedroom apartments falling marginally to $1,508 per month from $1,518 per month towards the end of 2005.

North Area 

  • TREB's North area continues to be the least active for rental transactions, with 206 units leased there during the last four months of 2006. Most of these (154) rentals occurred in Markham, Vaughan, and Richmond Hill.
  • While transactions were down marginally from the 208 recorded during the same time in 2005, rents were up in all categories, with three-bedroom apartments rising eight per cent to $1,962 per month.
  • There were also 31 condominium townhouses rented in the North districts, of which 25 were three-bedroom units. These rented for an average of $1,718 per month.

West Area

  • After the Central area, TREB West districts have been traditionally the most active for both condominium apartments, with 552 rented there in the last reporting period. In addition, 117 condominium townhouses were rented in the West, making it the most active market for this housing type.
  • Despite the activity, prices were mixed in the West districts. One and two-bedroom condominium units both declined in price, with the latter falling three per cent to $1,548 per month.

Active Rental Market in 2006 -- January 2007 Rental Market Report

Posted on Saturday, January 27, 2007 at 09:40AM by Registered CommenterElaine | CommentsPost a Comment

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