Tiny condos now the biggest losers in Toronto real estate market shakeup

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Condos sized at 500 sq. ft. and under are the only form of housing firmly in buyer\u0027s\u002Dmarket territory

Bibby’s experience is representative of a wider trend in Toronto, where it appears that these smaller units are weighing down the entire market.

Pre-COVID-19, these condos were the hottest on the market. Investors flocked to them because they were the only form of housing under $500,000 available in Toronto and the high rents they could charge on these units meant that making profit was close to a sure thing. Most of them were snatched up on the pre-construction market and as investors became more emboldened by their returns, they bought more units, Hildebrand said.

The pandemic has all but erased the premium that tenants once had to pay for living in the downtown core, Hildebrand said. That premium usually meant paying an additional $400 in rent for an identical unit outside the core. Now, it stands at $50. Frank Polsinello, a broker of record at RE/MAX, has seen this sentiment play out in the digital ads he places on Facebook for micro condos. In the past, the comments would be lined with interested people tagging agents to see the property. Now, they’ve turned negative.Article content continued

 

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For years I’ve been asking “with a condo what do you own” I still don’t “get it” but they keep making more.

It's still paying over half a million dollars to live in a closet, not to mention the condo fees that have to be paid on top of the mortgage.

435 square feet? Dear God, lol.

No kidding. The advantages of small condos (short commute, close to city amenities) are largely nullified and their disadvantages (tiny, hard to take deliveries) are now amplified.

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