Mr. Lamb is a development extraordinaire. His company, Lamb Development Corp. has 11 projects selling in Canada including notables like The Brant Park in Toronto, 6th and Tenth in Calgary and SoBa Condos in Ottawa.
Clearly, he’s not lacking experience when it comes to the Canadian real estate market so it makes sense that he was invited to appear on CTV News on May 8th to discuss the Toronto condo craze and the newly released CMHC numbers.
As you may know, according to the CMHC, the annual pace of home starts rose 14 per cent to 244,900 in April.
Here’s a few of the key quotes from Lamb’s CTV News segment…
On the sustainability of the level of supply coming on the market:
- “It is sustainable. This is exactly what we want. We’re fulfilling what the provincial and federal government want us to do which is populate our cities.”
- “The numbers are a little skewed… A typical condo building is 300 units in Toronto and Vancouver so when five or six of those buildings start in a single month they can skew the results and make them look better than they are.”
On the number of vacant units in Toronto:
- “Currently in the city of Toronto in the downtown core there are currently 500 condominium apartments for rent on the MLS. There are not 25,000 empty units in the city of Toronto. The CMHC is not right about that. What they’re talking about is when a developer finishes a project they’re 75-80 per cent sold out by the time they’re completed. There are 20 per cent of the units unsold, but they get sold very quickly once the building is done.”
On the number of foreign investors purchasing in Toronto:
- “We don’t allow foreign buyers to buy in our buildings. We look for residents of Canada and citizens of Canada.”
- “Toronto is one of the few places that wealthy people from lesser economies can invest in easily… They don’t have a lot of alternatives… Canada is the safest place to put your money in the world.”
On the difference between Canadian market and US market before housing bubble popped:
- “We’re not in any way close to the same situation the US was in. All our mortgages are insured if you’re less than 20 per cent down.”
- “Real estate prices will drop. The next time we have a recession I guarantee that real estate prices will drop. The question is: when will that happen?”