Take media reports on real estate with a grain of salt

At Baker Real Estate Inc., we are having an extremely busy summer. Recently, we launched three of the Greater Toronto Area’s most anticipated and significant condominium communities, and our pipeline for the remainder of the year and into 2023 is robust, with no hint of cancellations.

We are surprised to read ongoing media reports that some projects in Toronto and the GTA are cancelling or may cancel. Baker has been one of Canada’s leading pre-construction sales and marketing partners for more than 25 years, and no one has asked us to be included in their statistics. They should.

Substantial increase

Contrary to the negative headlines, our pre-construction highrise sales in July exceeded July of last year, as well as year-to-date. And keep in mind that 2021 was a banner year for us. In addition, the price of new construction condominiums year to date has risen substantially.

When you read articles, be sure they are not lumping pre-construction condominiums with resale and all homes. The scenario for new condos is a topic on its own. One of the major projects we launched in July is Forma – a three-way partnership among Great Gulf, Dream and Westdale, with architecture by the great Frank Ghery. Sales are robust. And that was in the summer, when sales usually lag, and while interest rates and inflation were rising, with reports of a possible recession. These results are nothing short of awesome. Are there ever delays? Sure, but that is something developers face all the time due to approvals and zoning taking longer than anticipated.

Remember, too, that the investor market is a driving force for our condo sales and look at how much rents have gone up in Toronto and the GTA. Yes, there were some dips during the pandemic, but according to the Financial Post and BNN Bloomberg, average rents for one- and two-bedroom apartments in Toronto have more than recovered; they are now at record levels. Anyone wanting to rent a one-bedroom apartment in the GTA will pay at least 20 per cent more than a year ago. In addition, the demand for rentals is huge, especially with foreign students coming in droves to attend universities here.

A balanced truth

The point is, the nature of headlines is that they draw blood and catch the eye. Avoid taking headlines at face value. I believe firmly in the self-fulfilling prophecy: Tell people something is bad, and they’ll make it bad. When media outlets print something that does not reflect a balanced truth, the results can be damaging.

Read entire articles carefully and question the sources for the information. My advice is to take what you read and hear in the media with a grain of salt – especially headlines, which far too often mine for the negative unfairly.