From the look of things, condos outside of Toronto are now offering a higher return on investment than those within the city's concrete-filled confines.
For the first time in six months, Toronto condos no longer dominate Strata.ca’s list of condo properties with the highest appreciation rates.
The real estate firm’s appreciation reports update at the end of each month. It’s been since February that Toronto condos have dominated the list.
A luxury building in Yorkville, Pears on the Avenue, was the only Toronto property to make the latest list.
Meanwhile, properties in Oshawa and Burlington appeared multiple times in the Top 10, which also included condos in Whitby and the red-hot Hamilton, which is now Canada’s third least affordable city.
"This may simply reaffirm what many of us have known all along," says Robert Van Rhijn, Broker of Record at Strata.ca. “Homebuyers are increasingly looking outside city limits for affordability, and the data is finally starting to reflect that trend.”
In Toronto, condos are selling on average for about $895 per square foot compared to just $647 in Burlington and $505 in Oshawa. In Burlington, where the real estate market has been on fire in the past year, the city's offerings are increasingly beginning to reflect a discerning urban taste to cater to new residents, with the addition of new restaurants and boutiques.
“By looking outside the city, you’re buying into a market at much cheaper prices with the potential to earn back that investment at a much quicker pace,” explains Van Rhijn.
Photo via the City of Burlington, Ontario Facebook page
Top 10 Highest Appreciating Condos in the GTA in the Past 12 Months
1) Burlington | Lakepoint Condos | 2190 Lakeshore Rd | +53%
2) Toronto | Pears on the Avenue Condos | 127-135 Pears Ave | +41%
3) Burlington | Vibe Condos | 5030, 5010, 5020 Corporate Dr | +40%
4) Oshawa | Wentworth Gardens Townhomes | 401 Wentworth St W | +39%
5) Hamilton | Kenora Townhomes | 250-262 Kenora Ave | +37%
6) Whitby | Sprucedale & Palisades Townhomes | 1-118 Sprucedale Way, 10-34 Palisades Crt | +37%
7) Mississauga | Glen Erin Drive Townhomes | 4171 Glen Erin Dr | +37%
8) Oshawa | Glen Street Townhomes | 1010 Glen St | +36%
9) Oshawa | Pearson Street Townhomes | 222 Pearson St | +36%
10) Oshawa | Dorchester Drive Townhomes | 540 Dorchester Dr | +34%
The latest appreciation data illustrates the spillover effect from Toronto’s red-hot housing market where the average price of a condo is just over $720,000, according to Nathaniel Hartree-Hallifax, a realtor at Strata.ca.
With Toronto prices so high, people are giving up on the prospect of owning a property in the city and instead turning their eyes outside of Toronto confines to more affordable pastures -- something made more practical for many professionals thanks to the pandemic-inspired remote work culture.
Strata.ca broker Cliff Liu caters to a wide demographic of buyers, including baby boomers in Toronto’s outskirts. He thinks this group may be fuelling those soaring appreciation rates as well.
“Many seniors are cashing out on their suburban homes, and choosing to downsize in these same neighbourhoods,” says Liu. “So they’re also adding to the demand, driving up values even faster in these areas.”
Hartree-Halliax notes the famous slogan that “a rising tide lifts all boats” to illustrate the impact of Toronto’s rising prices on the wider region. “Even still, properties outside the city have so much more room to appreciate,” he explains. “Whereas condos in Toronto have already hit that glass ceiling of affordability.”
And so, apparently, have the city's would-be homebuyers.
