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Investors eye 'towering Toronto'

Toronto real estate continues to be a very solid investment.

The apparent proof of this is the release of new figures from the Toronto Real Estate Board, which show that:

- The Greater Toronto Area (GTA) housing market recorded 9,411 transactions in May.

- On a year-over-year basis the GTA average price increased four percent to $398,148 from an average of $382,767 in May 2007.

- Prices increased three percent in the City of Toronto to $434,271 from $422,163 the previous year.

According to David Stanley Redfern Ltd, the figures provide further evidence that ‘real estate continues to be a solid investment in Toronto'.

A spokesperson for the company further noted: "Employment in the GTA continues to be strong and interest rates remain low, meaning consumers have the financial resources to buy homes and have a variety of choices to manage carrying the costs".

In the last year, net asking rent rates in the Greater Toronto area increased from $16.10 per square foot in Q1 2007 to $17.98 in Q1 2008.

The Toronto market - as opposed to the wider GTA market - has enjoyed the lowest vacancy rates, falling to 3.6% in the first quarter of 2008. Rent rates increased from $20.71 per square foot to $23.86, a 15% annual increase.

A spokesperson for DSR concluded: "Toronto is one of the only places in the world where rental yields rise in line with property size, and Canada the only established market in the world with average rental yields of around 8 percent".