New Condo Market Activity in Calgary

July 18, 2012
By Cody Battershill

Calgary Condo Market Activity Rises - June 2012

A recently disclosed report by the Financial Post discussed how the condo market in Toronto has possibly reached its climax during 2011, and that the condo market in Calgary is just starting to heat up. Published by a well-reputed real estate research company, the report entails how the new condo market in Calgary has increased in activity from 2011 by more than 100%. New condo sales in 2010 numbered approximately 1100, while in 2011 they reached a benchmark of 2500.

The number of unsold condos remained at similar levels throughout 2010, but new condo developments had some momentum as they had high initial sale rates. The research company who published the report suggests this is due to a strong economy in Calgary that is constantly growing and also is from less rental vacancies, both favorable for investors and is returning their interest back into its real estate market.

As for Toronto, the city is attempting to handle a massive amount of new condo supply which have been developed, with a substantial 79000 new condos recorded in the last month of 2011 either currently in pre-construction or under construction. Lets speculate that half of those new condos are turned into rentals, then 40000 units would be added to the condo rental pool in Toronto, meaning that the demand must increase by approximately 8000 units each year in order to keep current vacancy levels the same. That my friend is a massive number!

One of the main concerns for the city of Toronto is if the rental levels for condos owned by investors can keep up with the supply. It seems YYC won’t have the same problem since there is lots of potential improvement in new condo sale rates as economic activity rises.

*Referenced from http://bestofourmarket.com/2012/06/calgary-condo-market-heating/