Trump Tower Woes Signal Top of Toronto Condo Market – Bloomberg 12-24-12

Salient to Investors:

Toronto has more skyscrapers under construction than any other city in the world.

John Andrew at Queen’s University said people buying units purely as an investment and not to live in is a sign that the Toronto market is on thin ice – the luxury market always feels the cracks of a housing market first. Andrew said hotel-condos are at the high-risk end of the spectrum for commercial investment.

Adrienne Warren at Bank of Nova Scotia said the Toronto housing market is due for a soft landing as demand weaken in 2013 on reduced foreign and domestic buying in a market with oversupply.

Charles Suddaby at Cushman and Wakefield said it will take time for the market to absorb the sudden glut of luxury hotel rooms flooding the market, and it may take 8 years for the Trump project to get absorbed and gain a profit.

Read the full article at http://www.bloomberg.com/news/2012-12-24/trump-tower-woes-signal-top-of-toronto-condo-market.html.

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