A study of downtown intersections shows apartments sell for more at Bay and Bloor Sts. and Avenue Rd. and Bloor St.
When it comes to resale condos, some of the city’s key downtown intersections appear to be cornering the market with prices up to 23 per cent higher than the citywide average, according to a Tuesday report from TheRedPin.
The real estate company looked at 25 key intersections in the core. It found two-bedroom condos at Bay and King Sts., and Bay and Bloor Sts. fetched some of the highest prices in Toronto between January and Aug. 31 — averaging above $1.5 million.
Two-bedroom apartments in the tony Yorkville neighbourhood at Bloor St. and Avenue Rd. sold for $1.3 million on average. But one-bedroom condos near that corner were more expensive than the Bay St. intersections — costing $753,735, compared to $494,591 at Bay and King, and $626,989 near the corner of Bay and Bloor.
“At the busy traffic intersections things can be 20 per cent or more valuable,” said Enzo Ceniti, TheRedPin director of sales training.
“If you’re an investor and looking for areas to buy then you probably want to target areas like that. If you’re someone who wants to be close to a particular intersection because you grew up around there or you work near there and you want to be within walking distance, you might need to pay a little bit more,” he said.
Fifty-six per cent of condos at the 25 intersections were one-bedroom units and 30 per cent were two-bedrooms. The remainder would be studios and some larger apartments.
“At these intersections you can see the resale value will be very, very good. Conversely the rent in those areas can be just as high,” Ceniti said.
A similar study by TheRedPin last year showed that condos along the Bay St. corridor sold for more than Yonge St.-area apartments.
This year’s report averaged prices within a 250-metre radius of each corner — about a three-minute walk. It is an overview, says TheRedPin. Given the confined areas of the study a couple of high or low sales can dramatically alter the average at a particular corner.
TheRedPin reports that the least expensive one-bedroom condos were at the corner of Queen and Yonge Sts., with an average price of $371,444. There were no two-bedroom sales at that intersection.
The lowest sale prices for two-bedroom units were at Yonge and Dundas Sts. where the average was $658,234.
Pre-construction condos where consumers have to visualize what a floor-plan will look like before the building actually exists, offer good value but the reward is more immediate in the resale market, Ceniti said.
“When you’re purchasing resale you can step into that unit and look around. I can see amenities, I can see exactly where my parking spot is. If you’re more visually inclined, resale is the way to go — instant gratification really,” he said.
Condo prices appreciated 24.8 per cent year over year in the first eight months of 2017, compared to single-family homes that went up 19.8 per cent in the same period.
Condos outside the downtown tend to cost less. A one bedroom at Yonge St. and Finch Ave. averaged $424,698 during the study period. Two-bedrooms cost $583,014 on average.
Apartments at Ellesmere and McCowan Aves. sold for $356,227 on average for a one-bedroom and $500,800 for two.
The distinction between the house and the condo market has been shrinking as apartments are increasingly the entry-level home for Toronto-area consumers, he said.
For years there was a sense that ground-level housing would appreciate more year over year, Ceniti said.
“Now, as the study shows, condo prices have really increased,” he said. “Part of that is just that condos are just much more accessible so a lot of people would prefer to buy them for a low overall cost. As a result it does actually get a little bit competitive. When it gets competitive, prices go up.”
By TESS KALINOWSKIReal Estate Reporter
Tues., Sept. 19, 2017