Until recently, in the Toronto real estate market, buyers looking for value appreciation potential typically saw houses as a sure thing; as of March 2017, detached home prices were soaring, up a whopping 29.8 per cent year over year.
That all changed, however, with the implementation of the Ontario Fair Housing Plan – rolled out by the former provincial government to improve housing affordability, it effectively chilled the detached and semi-detached housing market.
But as activity for low-rise housing fell by double-digit percentages throughout the GTA, the opposite occurred in the condo market, with multi-family housing now leading the market in terms of price growth – a trend that has continued well into 2018. New quarterly data from the Toronto Real Estate Board reveals the average unit price rose 9.7 per cent year over year to $594,039 between July and September. Last month alone, the average unit fetched $615,582, up 11.7 per cent, compared to a decline of 1.4 per cent for detached home prices.
Condo Prices Remain King in Toronto
In fact, according to a new value appreciation analysis by Zoocasa, condo values are up in 23 of 35 markets, and up 11 per cent compared to last year throughout the city as a whole. In comparison, low-rise homes (the weighted average of detached and semi-detached houses) rose only 1 per cent, and only outpaced condos in 12 neighbourhoods.
However, not all Toronto neighbourhoods experience growth at the same pace; houses for sale in Etobicoke, Islington City Centre W, Leaside, Moore Park, and Regent Park, generally saw greater value appreciation than the area’s condo stock, likely due to a higher luxury price point.
Condos in downtown Toronto, especially toward the city’s west end, continue to reign supreme, supported by a booming city-centre job market and demand for the 416’s trendiest neighbourhoods. As well, neighbourhoods known for their upscale housing stock, such as North York’s Willowridge community, as well as tony Yorkville, are among the top five areas experiencing the greatest price appreciation.
Check out the infographic below to the Toronto neighbourhoods where condo values have increased more than houses, and vice versa:
*Home prices are from Toronto Real Estate Board’s September Report. Average house prices are calculated as a weighted average of detached and semi-detached home prices. Calculations by Zoocasa.
Top 5 Neighbourhoods Where Condo Prices Appreciated More Than Houses
- TIE 1 – (W09) Willowridge, Martingrove, Richview
Average Condo Price: $372,000 (+43%)
Average Semi / Detached Price: $1,006,00 (+16%)
Total SNLR: 45% (BALANCED)
- TIE 1 – (W05) Black Creek, York University Heights
Average Condo Price: $358,566 (+43%)
Average Semi / Detached Price: $745,160 (+5%)
Total SNLR: 43% (BALANCED)
- 2 – (E10) – West Hill, Centennial Scarborough
Average Condo Price: $297,500 (+37%)
Average Semi / Detached Price: $827,370 (-9%)
Total SNLR: 35% (BUYERS’)
- 3 – (E06) – Birchcliff
Average Condo Price: $536,333 (+35%)
Average Semi / Detached Price: $965,362 (+7%)
Total SNLR: 32% (BUYERS’)
- TIE 4 – (W01) – Roncesvalles, Parkdale
Average Condo Price: $629,045 (+32%)
Average Semi / Detached Price: $1,716,518 (+18%)
Total SNLR: 63% (SELLERS’)
- TIE 5 – (C02) – Yorkville, Annex, Summerhill
Average Condo Price: $1,209,938 (+32%)
Average Semi / Detached Price: $2,020,217 (+23%)
Total SNLR: 43% (BALANCED)
- TIE 5 – (E08) – Scarborough Village, Guildwood
Average Condo Price: $364,915(+29%)
Average Semi / Detached Price: $851,155 (+1%)
Total SNLR: 50% (BALANCED)
Top 5 Neighbourhoods Where House Prices Appreciated More Than Condos
- 1 – (C08) – Regent Park, St. James Town
Average Condo Price: $695,740 (+14%)
Average Semi / Detached Price: $1,891,000 (+58%)
Total SNLR: 52% (BALANCED)
- 2 – (C09) – Rosedale, Moore Park
Average Condo Price: $1,474,379 (+30%)
Average Semi / Detached Price: $4,097,250 (+51%)
Total SNLR: 38% (BUYERS’)
- 3 – (C11) – Leaside, Thorncliffe Park, Flemingdon Park
Average Condo Price: $446,538 (+15%)
Average Semi / Detached Price: $2,404,875 (+26%)
Total SNLR: 55% (BALANCED)
- 4 – (W07) – Stonegate-Queensway
Average Condo Price: $510,000 (+5%)
Average Semi / Detached Price: $1,484,853 (+25%)
Total SNLR: 43% (BALANCED)
- 5 – (W08) – Islington-City Centre West
Average Condo Price: $499,903 (+1%)
Average Semi / Detached Price: $1,513,584 (+24%)
Total SNLR: 40% (BALANCED)
