Condo construction underway in the city’s core. Image via Flickr
What goes up must come down, and it seems condo development across the GTA is no exception. Well, sort of.
According to the Financial Post, a new CIBC report says condo developers in the city are having trouble getting credit, but the number of projects completed will still rise to 23,000 in 2014, up from a projected 18,000 in 2013.
Benjamin Tal, a CIBC economist and author of the report, says the challanges don’t foreshadow a market crash, but that, over time, increased vacancies and delays in construction may be seen. “[Developers] will get the money but they will have to pay more for it and it will take more time,” says Tal, explaining that “2014-2015 will be a turning point in the condo market.”
Still, CIBC says developers’ lack of credit might not be bad news. The slackening pace of construction could help combat over-saturation in the market.
[via Financial Post]
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Josh Sherman is an intern at Toronto Standard. You can follow him on Twitter at @joshuaxsherman.
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