The Calgary Condominium Market
We always keep a close eye on the best opportunities in the pre-construction market, constantly monitoring different areas of Toronto and staying on top of the infrastructure projects the city has planned and how any given neighbourhood is set to develop, since that's the single most important factor affecting the returns our clients earn on their investments. On top of that, we also keep a close watch on what's happening in other Canadian cities.
For example, back in 2017, we were actively working on projects in Montreal and Ottawa - cities that saw a wave of Asian capital arrive after Toronto introduced its 15% foreign buyer tax, and where prices started climbing sharply after a period of stagnation. Those who took our advice back in 2017 and bought property there are now sitting on very healthy gains.
Today I want to tell you about a new investment opportunity in the city of Calgary. After conducting a thorough analysis, we believe Calgary has excellent potential right now for pre-construction investment. We're absolutely confident that Calgary is one of those places where, over the next 5 to 10 years, investors putting money into condo deposits at the pre-construction stage will see very strong returns.
Calgary is one of Canada's largest cities, with a population of roughly one and a half million people, and while Toronto's population grows by about 0.9% a year, Calgary's grows by 1.8% - twice as fast. The city follows a standard development pattern centered around downtown, where most major corporate offices, banks, shopping centres, restaurants, and stores are located. The city has a fairly well-developed transit network built around modern LRT lines. In recent years, the suburbs have also been developing very actively, with new housing and supporting infrastructure going up.
Over the past 5 years, Calgary has undergone sweeping changes. Alberta's economy is gradually becoming less dependent on oil-sector revenue, and a growing number of tech companies are opening offices here. To give you a sense of the scale of this shift: Alberta is now home to more than 3,000 high-tech companies, up from just 1,238 only three years ago. The province's tax policy differs significantly from Ontario's, and that's drawing large manufacturers of goods and services here. Alberta's corporate tax rate is just 8%, compared to 11.5% in Ontario, and instead of the 13% HST, you only pay 5% here. Calgary's GDP figures are the highest of any major city in Canada.
Calgary is home to 5 major universities and numerous colleges, and it draws a very large number of international students. Calgary offers a high standard of education at a relatively low cost. All international students studying in Calgary get free health coverage and excellent prospects for obtaining Canadian permanent residency after graduation.
On top of that, Calgary has beautiful natural surroundings, a high standard of living, and one of the highest average household incomes in Canada, currently around $110,000 a year - even somewhat higher than in Toronto. The city is changing before our eyes, and it's now safe to say Calgary has very strong long-term prospects. When it comes to real estate, experts consider it practically the only city in Canada where property remains genuinely undervalued today. With property prices running at less than half of Toronto's, while rents are only about 30% lower than Toronto's, this is unquestionably an appealing market for investors.
The legal landscape in Alberta is very different from Toronto's - there's no 15% foreign buyer tax here, no restrictions on short-term rentals, and no Land Transfer Tax either. As a result, closing costs run to just a few thousand dollars. In just the first 8 months of this year, Calgary real estate appreciated by more than 8% on average, with modern condo developments appreciating even faster - and in our view, this is only the beginning. Prices here are set to climb very actively over the next 10 years; right now we're at essentially the starting point that real estate investors are always trying to catch.
Calgary is currently at a stage where investing in pre-construction condominiums is all but guaranteed to deliver excellent returns. We've built relationships with colleagues in Calgary and will soon be offering the full range of our services there, just as we do in Toronto - not only handling pre-construction sales, but also helping with mortgage financing, renting out units, and providing property management services for rental properties. Our clients will simply get to watch their investment grow. In the very near future, we'll be launching sales for one project being built in a truly unique location - right in the heart of downtown Calgary along the Bow River, a 3-minute walk from Princes Island Park and less than 10 minutes on foot from the core of Calgary's downtown financial and office district. To put that in Toronto terms, it's roughly the equivalent of a condo being built at the intersection of Yonge Street and Lakeshore.
And finally, one factor that matters enormously to investors: the deposit. On this project, we've negotiated special sales terms for our clients, with a deposit of just 5% of the purchase price. This is a truly unique investment opportunity, and all the information is already available on our web portal, www.newGTAcondos.com - the project is called First and Park Condos. If you have any questions, you can also book an online appointment right there on the portal. You can submit a request for a preliminary reservation today, and pricing, floor plans, and the sales launch date will be posted on the site very soon. As always, all of our clients who submit a preliminary reservation will get priority and be able to choose their units first.