The Toronto real estate market continues to tighten this year, pushing both prices and competition upwards. This could result in more first-time buyers looking towards the condo apartment sector as an affordable entry point into the real estate market. But which neighbourhoods offer buyers the best return on their investment?
Enjoying our content? Subscribe to our free weekly newsletter to get Canadian real estate market insights, news, and reports straight to your inbox.
Though prices have generally fallen compared to a year ago, largely due to interest rate hikes, condo apartments actually saw the smallest dip in average prices compared with other property types in 2022. In fact, over the last year several Toronto neighbourhoods saw condo values depreciate less than detached properties and a few neighbourhoods even saw condo values increase.
To find out how much condo prices changed compared with detached homes, Zoocasa analyzed 35 Toronto neighbourhoods and compared the average condo apartment price against the average detached house price in April 2023 to April 2022.
Condo Prices Increased in 3 out of 35 Neighbourhoods
Yorkville, Annex, Summerhill experienced the largest price growth for condos at 5.1%, reaching an average price of $1,414,919 in April 2023. Interestingly the same neighbourhood experienced a 34.7% decrease in detached home price, the largest drop on our list.
Further north, Willdowdale West, Lansing-Westgate condos and detached homes both appreciated, with condos up 2.4% to $772,969 and detached homes up a significant 16.9% to $2,295,616. The last neighbourhood to experience condo price growth was WIllowridge, Martingrove, Richview, where condo prices grew by 1.1% to an average price of $573,962 and detached home prices dropped by 13.4% to $1,387,226.
The remaining 32 neighbourhoods saw condo values depreciate, however in 11 of them condo prices depreciated less than detached homes. Bathurst Manor, Clanton Park and High Park North, Junction, Runnymede neighbourhoods had the largest gap in price drop between condos and detached homes. Bathurst Manor, Clanton Park condo prices dropped by 5.2%, while detached homes dropped by 19.5%. High Park North, Junction, Runnymede condo prices fell by 6.9% while detached home prices fell by 21%.
Largest Condo Price Drops Found in the City Centre
The northern edge of the city in Bedford Park-Nortown, Lawrence Park, Forest Hill North experienced a dramatic drop in condo prices, falling by 34.1% to $1,013,472, still far above the City of Toronto average of $751,916. The neighbourhood’s detached home prices also fell, but not to the same degree, dropping by 8.2% to $1,787,752.
To the eastern edge of Toronto, Birchcliff also saw a significant drop in condo prices from 2022, falling by 26.1% to $591,500. Detached homes in Birchcliff fared better and only decreased by 0.4% to $1,316,380.
If you’re looking to enter the Toronto real estate market, our experienced real estate agents can help. Give us a call today!
