Toronto Condos as Re-sales and New Developments alike prices are currently inching up. The “hot” buildings have seen significant gains, while older buildings (7+yrs) don’t appreciate that much, especially if the condo fees are relatively higher, and seem even higher to most buyers when hydro is included.
By “hot” buildings I mean Murano Condos, Maple Leaf Square, Freed Developements (75 Portland, 550 Wellington, 650 King St. West , Fashion House, 66 Portland, 500 Wellington) and other near-completion buildings. Most local buyers prefer to see the units in person, even if it means paying more for them. Int’l investors simply buy from plans, and
If you’re looking to find stuff at 350PSF, you’re looking at an older building and will pay the price via higher condo fees.
If you’re looking at C01, C08, your range is 400-600PSF with premium units (high floors, water views) can go up to 700PSF. Yorkville is 1000+.
So when or why would prices go down? if we see massive inflation that will render the value of your earned salary less and less, as well high interest rates that will put pressure down on prices.
Otherwise there are very little new units coming online and those are quickly purchased by end users or investors. Those who hesitate will end up paying more for the same, especially new buyers or bargain hunters which refused to buy in a new buildings a year ago at 400PSF now will have to come up with 500-600 for the exact same property, won’t be able to pick the unit they want and wil be stuck with finishes and upgrades that were picked for them by someone else – hope they had good design sense.
Rents are also up by 5-10%.
What does it all mean? it means that investors can still pick 1 1+den with parking and locker for 270,000 and get rents at 1450/mo. which provides, with the right financing structure, positive or neutral cashflow and significant appreciation.
As prices keep increasing – it’s all about supply and demand and currently demand exceeds supply – those renters who did not buy will find it much tougher to purchase as the value of their saving for downpayments will erode, and they will end up buying a smaller unit, lower floors, away from the core or keep renting.
Quick price scan:
Standard downtown C08 400-600
Luxury downtown 500-700
Core, Yorkville 700-2000
Yossi Kaplan, MBA
Sales Representative, Your Choice Realty Corp
885 Don Mills Rd suite 104