Toronto condo supply at a record high

A client forwarded me the following article from Sunday's Globe & Mail and asked if it made me nervous about Ottawa's condo market:

Toronto Condo Market Hits ‘Down’ Button

The short answer is ‘no’. While prices are getting high in Ottawa, too high in some instances, I have yet to see signs of a bubble about to burst so long as—

1. Federal government employment provides a healthy and stable income base

2. Ottawa condos are still largely owner-occupied as compared to Toronto; although investor fever is starting to catch on, we are nowhere near the number of investor-owned condos in Toronto (estimated at 40% of all units)

3. Most Ottawa developers do not allow ‘re-assignment’ of their units ie. selling a condo to another investor before the building has been completed

4. Demand for affordable 1-bedroom condos in the downtown core continues to outpace supply