One bright and sunny afternoon, I was taking a leisurely stroll in my neighbourhood of King & Spadina. I was struck by the number of condominium projects either in construction or in development within just a 1 km radius of the King & Spadina intersection.
Below is a Google map of JUST A FEW of the projects in this small area of the city.
Below the map are pictures I took during my walk of the various condominum projects.
Here are my thoughts as a resident living in the King and Spadina area:
- I frequently visit sales offices for new condominium projects. Invariably, the vast majority of prospective purchasers are overseas investors – usually from China, India and the Middle East
- Let’s do a thought experiment – what would happen to these buyers if, for example:
- the Chinese economy collapses when its real estate bubble bursts. Many influential players in the investing community are convinced this is a certainty;
- Greece exits the Eurozone and is forced into bankruptcy, setting off yet another crisis in the international financial markets. As I write this, this is a very distinct possibility;
- there is another Middle East crisis – for example, the United States and Israel attack Iran in order to halt its nuclear weapons program
Any one of these incidents can set off a crisis in the international financial markets and the global economy. Consequently, if overseas investors stop buying into the Toronto condo market as a result of economic turmoil, that market will most certainly collapse.
In my opinion, these builders (and anyone buying into these units as investments) are setting themselves up for a very hard fall. The consequences will prove to be very nasty for our local and national economy.
Victor’s Insane Condo Map – Click on blue marker for details
View larger map