The 'Up'rising

Kitchener Tallest Condo Project

The 'Up'rising

Tall towers of glass and steel have filled the sky of Waterloo region in the last decade. Expanding tech centre, influx of students in the region’s post secondary institutions and convenient locations near the LRT line have catalysed the growth of condominium market in Kitchener-Waterloo. If you want to know more about this ‘uprising’, read on!

While everyone has been focused on the increase in prices of detached and semi-detached houses in the region, Condominiums have been quietly raising their game and climbing up the price ladder. Assessments conducted in 2017 revealed that median Condominium prices in the region rose by 14.3%, on a year over year basis which is more than ANY other housing type.! Surprised? Probably time to start investing!

Let me tell you a story. A few years ago, Michael Wekerle or the ‘dragon investor’ as he is popularly known as, pitched an upcoming condominium project to a roomful of 1600 people. He talked about the basics – Presence of universities, growing tech centre and start-ups. He jazzed up his pitch by including the cranes in the region’s skyline which according to him went from zero to fifteen since he started paying attention to the region. A few hours later, real estate investors pounced on the project like hungry sharks and the $85 million District Condos project was sold out; with 170 people in the waiting list!

Let’s talk a little about why condos are a safe investment in the region. The answer is simple if we look at trends to see who lives in condos which points towards three major cohorts - students, young professionals and retirees. Waterloo Region has a median age of 37.7 years, which means the population here is on average younger than in Ontario or Canada. Students come to Waterloo to pursue education in outstanding postsecondary institutions in the region which then feeds this talent to the technological sector. The research and development capability in the region has attracted giants like Google, Communitech, Blackberry and Shopify which present great career opportunities and help the region retain its youth.  All this young population with no families to support; and guess where they’ll be living? Yes! Condos! This is the latest trend in student housing – luxurious condos with gyms, study rooms, recreation rooms and all that jazz.

Waterloo region also has a significant aging population. About 14.4% of the population in the region is above the age of 65 years.  Seniors have shown a trend of downsizing to condos which are perceived as more secure, requiring less maintenance along with a close-knit community. The perfect age demographics to fuel the condo boom has made it a hot seller in the region!

An Urban carefree lifestyle, affordability in comparison to other housing types, simplicity and security make condos an easy preference for the younger population and seniors alike. Going by the economic success of Waterloo, with top universities, low unemployment rates and high median incomes – young renters will continue flooding the market with the demand for condominiums, and of course, there are plenty of investors waiting to provide just that.

 

Written and Researched by:

Gursimran K. Saini

 

 

References:

Why Invest in Waterloo region

'It's the New Waterloo': How the Rise of Silicon Valley North is fuelling another Canadian Condo Boom

Waterloo Demographics

The Latest Trend in Student Housing: Luxe, Off-campus condos

Bold Predictions for 2018 K-W Market

Waterloo Census Report, 2016

Condo Living a great Option for Seniors

 

 

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