Greater Toronto Area
Vacancies: 1.4% ↓
Rents: $1,228 ↑
Rapidly Expanding Opportunities on the Horizon
The City of Markham, located at the City of Toronto’s border in the southeastern corner of York Region, has seen rapid growth since the 1960s when Toronto’s urban sprawl spread across its boundaries.
This rapid growth has already raised housing prices and congestion fears. Major new transportation initiatives include the construction of Highway 407 across the city, new GO Trains, and the VIVA bus rapid transit network. Markham also embarked on a policy of intensification and mixed-use development, to try and expand its urban centre away from a pure suburban model.
In spite of this growth, Markham has the second lowest concentration of apartment units in the province, and most of these buildings are small. Transactions are extremely limited, with fewer than a dozen apartment deals taking place since 2000.
Markham’s extremely small market in the face of high demand is keeping vacancy rates among the lowest in the province and rents well above the provincial average. One new apartment building comprising 63 units was added to the market in the past ten years, but that represents a drop in the bucket.
With high median after-tax household incomes, a rising population and good job growth, any new units added to the market will be quickly snapped up by residents pushed away by Markham’s high housing prices.
We have ranked Markham as the best city in Ontario to invest in the apartment market, tied with Vaughan, King & Richmond Hill. We have rated Vaughan, King & Richmond Hill as marginally higher due to its higher median after-tax income, but both centres share the prime conditions of a small market, high demand, high incomes and high growth. Investors need to buy what they can and, where they can’t buy, build.
- Repressed market will continue to support new construction but limit buying opportunities.
- Repositioning offers great returns, if anything can be found, so investors should buy what they can.
- Current rental stock is small and ageing. As a result, the market is ripe for new apartment construction at the top end of the rental market.
- As with Oakville, properties may be available for repositioning as boutique apartments in old downtown Markham.
INTERESTED IN NEW APARTMENT CONSTRUCTION IN THIS REGION? FILL OUT THE FORM BELOW TO REQUEST THE RECENT TRANSACTIONS.
Global Director Buildings
Mansoor Kazerouni is an Architect with over 27 years of experience and a significant portfolio of projects completed or underway across Canada, the United States, the UAE, Jordan and India. These include high density high-rise residential buildings, hotels, office, retail, institutional, and complex urban mixed-use developments. A number of these projects have been nominated for and received Urban Design and Architectural Design awards.
Mr. Kazerouni is the Global Director of Architecture at IBI Group, leading a team of over 1,400 Architects, designers and Engineers located in 60 offices worldwide.
Mr. Kazerouni has been a guest lecturer on the subject of architecture and mixed-use design at universities, conferences and various panels. He has also been interviewed on the subject by newspapers, architectural publications, television and other media.
Mr. Kazerouni's abilities and expertise in his field have been recognized by his appointment to the City of Mississauga's Urban Design Advisory Panel, the City of Markham’s Urban Design Advisory Panel and the City of Vaughan's Urban Design Advisory Panel. He is also a past Advisory Board Member of the Urban Land Institute, a member of the Ontario Association of Architects, the Alberta Association of Architects, the Nova Scotia Association of Architects, the Architects Licensing Board of Newfoundland and Labrador, and a member of the Royal Architectural Institute of Canada. He has testified as an expert witness at the Ontario Municipal Board and at Arbitration Hearings related to development sites.
Darryl McCullough CCIM SEC
Broker - Royal LePage Lakes of Muskoka Realty Inc., Brokerage
President - Crescent Equity Management Inc.
Since 1972, I have been given the opportunity to interact with seasoned partners and clients in structuring and organizing both simple and complex real estate transactions involving acquisition, disposition, finance, and consulting in Canada and throughout the United States. It has trained me to bring a unique, personal client-centered approach to each assignment, from simple to complex transactions and the diverse clientele who own them.
In 1984 I received the Certified Commercial Investment Member, CCIM, designation (www.ccim.com); an internationally recognized identity confirming amortized knowledge in the disciplines of investment, development etc.
Another prominent membership I thankfully am able to continue holding is with the U.S. based Society of Exchanges Counselors (www.secounselors.com). This organization shares my belief in pursuing and demonstrating problem solving techniques in the real estate industry based on proven principles of integrity, professionalism, and accountability. Through this organization I continue to dedicate myself to what is true in the discipline of real estate problem solving.
Technology coupled with a learned research and analytical skill set now allows me to carry out these functions with selected projects from my adopted Muskoka home.
I continue to maintain an ever changing “student” learning status not only related to the physical asset, but equal or more importantly, drawing out corporate/personal situations and objectives and then knitting together ultimate benefit packages based on creative solutions via time honoured formulas.