On the cusp of the pandemic’s second wave in Ontario, we recently asked five industry game changers to share their insights and predictions for the year ahead with regards to the pre-construction real estate industry. Here’s what the Milborne Group's Hunter Milborne, President and CEO, and Mariana Milborne, Managing Partner, had to say...

Hunter: In March, April and May when things initially locked down, business volumes dropped probably about two-thirds. They didn’t go to zero, but they really fell off significantly. Because you’re buying a pre-construction condo, it is pretty discretionary, right? You don’t have to do it this week or this month or this quarter, but by June 1 we did a new launch and it was quite successful. Then on July 6, we did another one and on Aug. 18, another one. It was a total of about 850 units and overall they’re probably 75 per cent sold.

Mariana: What’s also changed is the emphasis on the right deposit structure. More than ever, it’s so important to marry that whole offering because it really comes down to what people can afford. Also, providing inventory in the $600,000 to $700,000 range. This seems to be the threshold where people feel confident buying a one-bedroom, or one-bedroom plus den suite. But again, the deposit structure needs to be extended for as long as possible.

Hunter: There is a little bit of a decentralization trend happening, so places we are selling in Newmarket, Uxbridge, Stouffville and Hamilton are going to do better over the next year or two, also because it’s more affordable.

Mariana: You really have to look at the different generations and what their motives are for buying. In terms of condos, there’s always going to be an appetite for small units in the downtown core. In some 905 areas, you will be seeing more multi-residential condos coming. We see local people are buying to downsize, but they are buying smaller units for their children, too.

Hunter: In March, April and May, prices held steady. The projects we launched this year were priced higher than those we launched last fall. Generally, prices are up, and there are many reasons for this. Look what’s happening in the U.S. Canada is still more immigration friendly, and immigration dropped off but now it’s coming back. If a global pandemic didn’t dampen the prices of real estate, then what will? You may see some plateauing, or you may see some prices dropping a little here and there, but there is a lot more demand than there is supply.