A major real estate developer is brushing off fears of a bubble in Toronto’s red-hot condo market.
“My prediction, and I’ve been pretty accurate to date, is we are going to have a 30-to-40 per cent increase in values of the condo market in downtown Toronto over the next three to four years,” Barry Fenton, CEO of Lanterra Developments, told BNN in an interview on Thursday. He later clarified he expects that price growth to occur over the next three years, not four.
According to data released by the Toronto Real Estate Board on Thursday, the average selling price of a condominium in the City of Toronto (specifically within the 416 area code) was $415,316 during the month of November. That figure represents an increase of 5.4 percent from the same month in 2014.
If Fenton – who leads the fourth-largest condo developer in the Greater Toronto Area – is proven correct, the average selling price of a Toronto condo will surpass $580,000 by the end of 2018. The prediction stands in direct contrast to widely held expectations of a price correction hitting the Canadian housing market in general, and the Toronto condo market specifically.
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