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The Incredible Rise of the High-Rise

National Post
May 10, 2008


Study finds nearby half of urban Canadians would purchase a condo

Condos are increasingly becoming urban Canadians’ residences of choice, as the lure of low maintenance and affordability boosts the number of potential buyers.

According to a 2008 TD Canada Trust condo poll, 48% of city-dwelling Canadians said they would consider buying a condo as their primary residence, up significantly from the 39% recorded a year ago.

Reasons for that interest vary widely across the country, as do the prices buyers are willing to pay.

“While affordability is still the main driver for many first-timers, the condo market today offers so many options and amenities – including energy-efficient buildings – that it is [luring] a wider range of buyers,” said TD Canada Trust representative Joan Dal Bianco.

Less maintenance than a house was a key factor for 34% of respondents, while 23% said a cheaper price would be their main reason to make such a purchase.

Nationally, 52% said they want to spend less than $400,000 to buy a two-bedroom condo, and 28% said they want to spend less than $200,000.

All of which reveals a gap between people’s expectations and the prices they’ll encounter when they go shopping.
“There are locations where you can buy a $150,000 condo,” Ms. Dal Bianco contends, while adding such properties may be older and lack amenities.

She concedes that “in large major cities, in particular Calgary, Toronto and Vancouver chances of finding something under $200,000 are pretty slim.”

The online survey was conducted by Angus Reid Strategies between March 20 and March 25 and the national sample is considered accurate to within 2.9 percentage points, 19 times out of 20.

A total of 1,200 online interviews were conducted with Angus Reid, which indicated they are likely to consider purchasing a condo as a primary residence. The sample consisted of 200 interviews in each of greater Vancouver, Calgary, the greater Toronto area, the Montreal metropolitan community, Halifax and Ottawa.

Key Findings

• At 96% each, an energy-efficient building and good building security are the top two amenities important to potential condo buyers, followed closely by low condo fees (94%), attractive design (92%) and proximity to public transit (86%). An environmentally friendly building is important to 83% of respondents.

• Parking is a must. More than three-quarters (76%) of respondents say that no parking would be a reason they would not buy a particular condo. Next on the list of “deal-breakers” is insufficient security (66%) followed by lack of energy efficiency (56%).

• Almost half of urban Canadians (48%) are willing to pay no more than $400 in monthly condo fees and 36% won’t pay more than $200. Montrealers, at 58%, are most likely to set $200 as their limit; Torontonians the least likely (25%).

• While most urban Canadians are not looking to raise a family in a condo, attitudes on this may be softening . In the 2007 condo poll, 71% of total poll respondents said they would not do so; this year it is 67%. Residents of Montreal and Halifax are least likely to consider raising a family in a condo.

• While only 7% of urban Canadians currently own a condo purely for investment reasons rather than as a primary residence, 38% say they would consider making such a purchase. Vancouverites are most likely to consider it (52%); Ottawans are least likely (25%).

• Most urban Canadians plan to live a number of years in the condo they purchase: 30% would spend six to 10 years in it, 27% would spend three to five years and 25% would spend more than 15 years.

Posted on Tuesday, July 29, 2008 at 12:05PM by Registered CommenterElaine in | Comments2 Comments

Reader Comments (2)

Hi,

This is good statistical information provided which will help the buyers more.
I think the rise in prices for these condos is very rapid and high.
Good comparison is provided here among different families living in urban areas in Canada.
August 6, 2008 | Unregistered Commenterproperty in Brazil
Hi

I think it is a very comfortable and amazing rise.
August 11, 2008 | Unregistered CommenterProperty Brazil

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