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Hot Ottawa condo market could cool
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CBC News-
One local architect confirms an Ottawa councillor's concerns an overflow in the city's condominium market is very possible.
Somerset Coun. Diane Holmes wants to launch an investigation into the local condo market to make sure the growth does not become a problem for the city.
She said complaints have flooded in about new downtown condo buildings and homeowners are less sanguine about the increased traffic and congestion that would result.
Architect Barry Hobin agreed a condo glut can easily happen but the solution is simply to sell to those who will live in the condos they buy, instead of resell.
"Ten years from now, when we've built all these smaller units, these investment-style units, what's going to happen in the market for those," said Hobin, "When they all become rentals are they going to be able to survive?"
There were 4,000 condo starts between 2008-10 and interest rates remain low, so investors are lining up to purchase and resell condo units.
Gary Thompson, who owns Byward Market restaurant Empire Grill, is one of those investors. He has already put money down on four condominiums because the growth helps business in the downtown core.
He calls Ottawa condos "probably the most undervalued real estate in the country."
Carleton University architecture professor Ben Gianni agreed condo growth is exactly what the city needs because it has lagged behind other cities in urban intensification.
He predicts Ottawa's condo market will not cool down, as some may suspect, because new developments will attract overseas investors.
"My guess is that even if the demand dries up domestically, we may still see a demand internationally for the units for investment," said Gianni.
Stanley Wilder, the city's housing policy planner, has said many of the projects in development from 2003-08 have sold out and some are expanding.
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