TD Bank Group Newsroom
For Ottawa Condo Buyers, Less Maintenance Is More Important Than Affordability
- 39% are most attracted to less maintenance aspect of condo living - Only 16% cite affordability of condos as a reason to purchase - Energy efficiency and low condo fees are the two most important amenities - Lowest in importance: "owning a brand new condo" OTTAWA, May 7 /CNW/ - Ottawa residents don't seem to be worried about the price of condominiums, according to the 2008 TD Canada Trust Condo Poll. When asked what would be the main reason they would purchase a condo, 39% say it is because they involve less maintenance and only 16% say it is because they are more affordable. Among six cities surveyed, 34% of respondents would consider buying a condo because of less maintenance and 23% say it is because they are more affordable than houses. Across Canada, condo popularity is steadily increasing. Almost half of urban Canadians (48%) indicate they would consider buying a condo as their primary residence, up from 39% in 2007. The findings are part of the 2008 TD Canada Trust Condo Poll. Conducted by Angus Reid Strategies between March 20 and 25, the poll looks at the attitudes of urban Canadians towards condo ownership. A total of 1200 online interviews were conducted with Angus Reid Forum panelists who indicated they are likely to consider purchasing a condominium as a primary residence. The sample consisted of 200 interviews in each of Greater Vancouver, Calgary, the Greater Toronto Area, the Montreal Metropolitan Community, Halifax and Ottawa. More than a third (36%) of Ottawans say they will pay no more than $200,000 for a two-bedroom condo. A further 58% say $200,000-$400,000 is their price range. This compares with a total of 28% in six major Canadian cities who want to pay less than $200,000, and 52% who would pay between $200,000 and $400,000. Royal Lepage's "Survey of Canadian House Prices" indicates that in the first three months of 2008, the average price of a standard (two-bedroom) condominium in Ottawa was $198,083, or 5.7% higher than the same period in 2007. On a nationwide basis, the average price was $240,423, or 6.9% higher than the same period in 2007. "With relatively modest price increases for standard condominiums in Ottawa over the past few years compared with other Canadian cities,(1) it is no surprise that Ottawans don't focus on affordability when thinking about buying a condo," says Joan Dal Bianco, Vice President, Real Estate Secured Lending. "And with economists predicting improved affordability in Canadian housing markets this year and next, they will likely not need to worry about condo prices any time soon." The corollary of a relatively stable price environment is that fewer Ottawa residents would consider owning a condo purely for investment reasons rather than as their primary residence. Only one-quarter (25%) say they would consider making this investment, 40% say they would not and 35% are undecided. Across the six cities polled, 38% say they would consider it, 28% say no and 36% are undecided on this question. 6% of Ottawa residents say they currently own an investment condo. Key Findings: - An energy-efficient building and low condo fees, at 97% each, are the two most important amenities for Ottawa residents, followed by good building security (95%) and an attractive design (93%). - At 40%, owning a brand new condo is the least important amenity. - 74% of Ottawans say that no parking is the main reason they would not buy a particular condo. Next on the list of deal-breakers, at 62%, is a lack of energy efficiency. - Like most urban Canadians, Ottawa residents are not looking to raise a family in a condo, with 63% saying no to the option. However, on a nationwide basis, attitudes to raising a family in a condo may be softening. In the 2007 condo poll, 71% of total poll respondents said no; this year it is 67%. - Having too many children in the building would bother 47% of Ottawa buyers vs. a total of 44% for the six cities polled. - Like urban residents in other major cities, most Ottawa residents expect to stay five years or more in a new condo. 29% would stay six to ten years, 18% eleven to fifteen years, and 23% more than 15 years. All results presented on a total basis for the six cities are weighted averages to reflect the populations of the individual cities. The margin of error for the Ottawa poll is +/-6.9%, 19 times out of 20. For the total sample of six cities, the margin of error is +/-2.9%, 19 times out of 20. About TD Bank Financial Group The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Financial Group. TD Bank Financial Group is the seventh largest bank in North America by branches and serves approximately 17 million customers in four key businesses operating in a number of locations in key financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust; Wealth Management, including TD Waterhouse and an investment in TD Ameritrade; U.S. Personal and Commercial Banking through TD Commerce Bank; and Wholesale Banking, including TD Securities. TD Bank Financial Group also ranks among the world's leading on-line financial services firms, with more than 5.5 million on-line customers. TD Bank Financial Group had CDN$435 billion in assets as of January 31, 2008. The Toronto-Dominion Bank trades on the Toronto and New York Stock Exchanges under the symbol "TD", as well as on the Tokyo Stock Exchange. The TD Economics Special Report can be found at http://www.td.com/economics/special/ca0408_housing.pdf ------------------- (1) 5.7% price rise from Q1 2007 to Q1 2008; 6.8% rise from Q1 2006 to Q1 2007, 3.5% rise from Q1 2005 to Q1 2006. Source: Royal Lepage Survey of Canadian House Prices.
For further information: Kelly Hechler, Media Relations, Corporate and Public Affairs, TD Bank Financial Group, (416) 982-2469
Get News Alerts by Email
Receive breaking news from TD Bank Group directly to your inbox.