If you’ve been paying attention to real estate trends in the Greater Toronto Area lately, you’ll notice a red-hot segment emerging. It is pre construction homes in Toronto and condominiums. Downtown Toronto’s soaring high-rises and sprawling masterplan communities in the suburbs. It seems like new pre-construction housing projects are being announced every week.
But what exactly is driving this development boom of preconstruction homes Toronto before they’re even built? And why are property hunters and investors alike clamoring to get in on the pre-construction action? The current demand surge can be attributed to several influential market forces unique to Toronto.
Are Pre-Construction Homes a Smart Investment?
Toronto is a competitive market. The housing supply needs to catch up to population growth. It is getting in early on newly planned developments and provides a rare opportunity to get a slice of the pie. You can get relatively affordable entry prices compared to resale properties.
Many investors see pre construction homes in Toronto as a chance to get their foot in the door in desirable neighborhoods. The values can inevitably skyrocket after the units are completed and occupied. The longer time horizons from contract to closing date provide more flexibility for investment strategies too.
There are brand-new pre-construction units that typically qualify for a host of attractive incentives and discounts. Builders provide it and they are not available post-construction. This includes exemptions from rent control estimations for investors seeking rental income down the road.
So from an investment lens, the pre-construction arena enables buyers to maximize long-term appreciation and returns.
Why Are First-Time Buyers Preferring to Pre-Construction Homes?
Real estate investors only make up part of the pre-construction housing equation in Toronto. There’s also an immense appetite for these properties from hombuyers. They are families, professionals, and anyone looking to get into their dream home for the first time.
One key advantage pre-construction provides is the ability to truly customize your home’s finishings and layout. When you buy pre construction homes in Toronto, you have a say in selecting flooring, cabinets, color palettes, appliances, lighting, and more before interior details are finalized.
In contrast, those purchasing already-built units have to accept whatever the developer chose. Unless they pay exorbitant fees for upgrades and renovations. This flexibility to get exactly what you want, how you want it, in your new home holds huge appeal.
For many buyers, the main draw of pre-construction is being able to plant roots in an emerging new community and neighborhood from its infancy. You get to personally witness the evolution and growth around you rather than moving into an already established area.
Is There a Lack of Housing Inventory Driving Demand?
No discussion around Toronto’s insatiable demand for pre-construction units would be complete without mentioning the GTA’s persistent housing supply shortage. Simply put, there is a lack of available inventory on the market to meet population needs. It is particularly in Toronto.
Record-low listings of resale properties and slow development pipelines due to land constraints and skilled labor shortages leave little recourse. It is other than exploring pre-construction opportunities in the region’s next crop of high-density communities. For buyers who can’t find what they want in the currently built landscape, preconstruction homes Toronto allows customizing dream homes from the ground up.
This demand for expansion beyond the city core has developers launching audacious new master-planned communities in the surrounding ‘905’ region. Many like Arcadia District and Reine are designed around future transit lines and amenities. These are not available in most existing locations.
You might be motivated by investment value or customization opportunities. It can be about getting a foothold in Toronto’s inventory-starved real estate scene. Pre construction homes in Toronto continue catering to avid buyer demand across the region from all demographics.
Developers are rushing to capitalize on that voracious demand by acquiring land for ambitious new communities. They are supplementing the lack of supply of housing. Everything from high-rise condos to low-rise suburban tracts is being planned. There are many projects now offering tours and off-plan contract signings.
If you are a buyer willing to plan ahead and enjoy a luxury lifestyle, pre-construction properties are a great option. You can get exactly what you want in the neighborhood of your choice before the finished homes inevitably get scooped up. The GTA’s pre-construction boom shows no signs of slowing down anytime soon. If you need any help in the buying process, we are just one call away. For the information on the latest preconstruciton homes Toronto, you can contact us anytime and we will help you with the list of hot projects.
