Condos offer an ideal entry point into the real estate market thanks to their comparatively lower prices in contrast to townhouses and single-family homes. Whether you’re purchasing your primary residence or planning to rent it out as an investment property, considering the potential for equity accumulation is crucial. “Condo apartments can offer a gateway to homeownership, presenting a more affordable entry point for first-time buyers. In the past five years in the GTA, condos have served as a stepping stone to rapidly build equity,” said Carrie Lysenko, CEO of Zoocasa.
In Toronto and the Greater Toronto Area (GTA), the location of a condo purchase has a significant impact on the return on investment.
To see how much a condo earned since 2018, Zoocasa analyzed data from 35 Toronto neighbourhoods and 22 GTA cities to gauge the equity growth of condos purchased at the average price over a five-year period, based on information from the Toronto Regional Real Estate Board.
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Neighbourhoods with the Highest Condo Price Increases
One prestigious and luxurious neighbourhood stands out for the highest return on investment. York Mills, Bridle Path, and Hoggs Hollow, with an average price of $898,188 in July 2018, have seen an impressive increase to $3.3M– a remarkable 270% gain, translating to $2.4M in equity.
Similarly, notable increases in equity were observed in Yorkdale, Glen Park, and Weston, where prices surged by 123% to reach an average of $656,143. Additionally, condos purchased in 2018 in Bathurst Manor and Clanton Park saw a substantial 67% price increase, with the average price climbing from $513,482 to $858,448.
Condo Values Decline in Two Neighbourhoods
However, two neighbourhoods experienced a slight decrease in potential equity: Forest Hill South and Oakwood Village experienced a modest 1% dip, with the average condo price dropping from $851,814 to $839,335.
In Rosedale Moore Park, the average price also fell by 3%, declining from $1,244,780 to $1,206,158.
These neighbourhoods are some of the most expensive for Toronto condo apartments, which means demand may be more minimal due to the out-of-reach price range for the average condo buyer.
Despite these two dips, investing in a Toronto condo over the past five years has yielded an impressive 36% average increase for all 35 neighbourhoods. In total, 52% of condos were valued at 20% or more since 2018.
Average Price of GTA Condos Skyrocketed
Buying a condo in the GTA over the past five years has also yielded significant equity gains. The average condo across the 22 cities analyzed experienced an impressive 48% average increase in value since 2018. Additionally, a staggering 73% of GTA cities saw the average condo price increase by at least 40%.
Top GTA Cities with the Highest Condo Price Increases
Looking at the top three cities for the highest condo equity gains, Oshawa saw the most remarkable increase, with condo prices soaring 108% over the five years. In 2018, the average condo price was $260,400, but reached $542,257 by the end of 2023.
Orangeville also experienced a whopping 75% increase, with the average condo price rising from $334,000 to $584,900. Similarly, both Scugog and Clarington saw impressive 66% equity gains. In Scugog, the average price of condos surged from $508,000 to $845,000, while in Clarington, the average condo price increased from $326,926 to $542,257.
The GTA cities with the lowest five-year growth included Vaughan with a 23% increase, Innisfil with a 16% increase, and Caledon by 9%. Despite these lower increases, they still reflect noteworthy gains.
Overall, homebuyers who invested in condos in 2018 reaped the rewards of the pandemic-driven surge in property values within the GTA and Toronto’s real estate market, resulting in significant equity growth.
Are you in the market for a condo in Toronto or the GTA? Give us a call today! One of our experienced real estate agents can guide you through the condo buying process.
