Why the GTA condo market looks good over the long term

As we look over the skyline of Toronto, the first thing we see is brick, mortar and glass. People behind the scenes devised a plan for each office tower or condo building, purchased the land and managed the project as buildings rose from the ground. One great aspect about my Toronto Under Construction Podcast is the chance it offers to speak with people working in and around the development industry. Recently, I sat down with veteran real estate developer Alison O’Neill.

O’Neill has spent more than 15 years selling and marketing new housing in the GTA with several of the area’s most recognizable developers, including Minto, Adi Developments, Great Gulf and Mattamy Homes. She has been involved with the underwriting and launch of more than 50 projects, resulting in the sale of more than 12,000 homes and condos in Ontario. Her experience covers all types of new development, from small infill projects and master-planned communities to mid- and highrise buildings.

“It was the best decision I ever made, and then I became obsessed...”

This quote was O’Neill noting her prudent use of the last $10,000 Canadian savings bonds she was gifted from her grandmother for university to buy a $244,000, 796-sq.-ft. one-bedroom plus den Liberty Village condo. She almost bought a car instead, which may have seen us miss out on an important female voice in GTA development.

Later in our interview, she commented on the world of real estate by saying: “Real estate is one of those careers you either love or hate, and I loved it.”

O’Neill worked with various developers, big and small, and fostered this love from all sides, starting with Great Gulf and having the chance to work on iconic projects such as One Bloor, Monde and 357 King, to name a few. Then, downsizing to a much smaller, more intimate developer in Adi Developments.

“It was like going from a Fortune 500 to a start-up vibe, but what attracted me to the role was the chance to build a team, build processes and grow,” O’Neill says.

Eventually, the big guys snagged O’Neill back, and she joined Mattamy Homes.

The future of suburbs

As Mattamy Homes leaves such a footprint in the cores of cities and suburban areas, I am a fan of more vertical construction and density in the suburbs. One of the things about Mattamy is that it builds a good mix in many of its communities, building stacked and traditional townhomes, single-family homes and midrise buildings. We need to see more of that in the suburbs. O’Neill notes that they have a lot of other master-planned communities in the works, a mix of multiple towers, mid- and highrise, and that Mattamy is hoping that on a few of those sites with access to transit, they can start creating that city feel.

Investor model

O’Neill has been able to view, up close, the vital role investors play in the housing ecosystem. In her words, “The investor market is key. If it weren’t for them, we wouldn’t have a rental or housing market, and then we’d have a real supply issue.” Unfortunately, investors are seen as a major culprit for price escalation on Toronto property, when in fact, it is the opposite.

With interest rates still fluctuating and potential government legislation looming to attempt to correct the GTA housing market, doing your homework is critical before leaping in. However, let’s end with one last piece of O’Neill’s wisdom. She noted that while the current market might spook the speculative investors, those looking for a long-term hold still believe in the future of the rental market in Toronto. She sees the light at the end of the tunnel for both end users and investors in the Toronto condo market.