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Toronto Condo Market Outlook
Outlook 2017: Expect rentals, exciting mixed-use and higher prices
Happy New Year! Pauline Lierman, Urbanation’s director of market research, was just hours into her first day back at work after the holidays when I managed to bend her ear about what 2017 holds is store for the Greater Toronto Area’s condo market. Good things, apparently! Here are some of Pauline’s predictions:
New condo projects, particularly rental properties: With such low supply of all types of residential units right now, developers will respond by bringing exciting new projects to market in 2017. Think big names like Mizrahi Developments’ The One at Yonge and Bloor, Pinnacle’s 1 Yonge Condos where the Toronto Star building stands and Mirvish Village on the just-shuttered Honest Ed’s site. And with costs of new condos continuing to rise, says Pauline, expect to see more developers and REITs offering up upscale rental properties－either throughout a building or within a section of it － that are about 50 square feet larger than regular condos. The number of proposed rental projects more than doubled from 2015 to 2016, according to Urbanation, due largely to the growing population and city dynamics. No doubt the momentum will continue this year.
The 905 will keep growing: Watch for ambitious new condo projects in York and Peel regions including M City on land originally bought by Ted Rogers plus projects around Mississauga City Centre, Vaughan Metropolitan Centre and Markham. Says Pauline: “It’s no cheaper out there to buy a single-family home. Circumstances in the city still apply outside of the city. It’s a GTA phenomenon right now!”
Intriguing neighbourhoods: From stacked to low-rise condos and townhomes to creative mixed-use combinations of residential/office/parkland, developers will keep things interesting in 2017 to make pockets of the city really come alive and into their own.
Prices will keep going up: No surprise there! The resale market is double-digit growth as of Q3 2016, says Pauline, particularly in the city of Toronto where good-sized units in sought-after ’hoods don’t stay on the market for long. Some resale buildings that aren’t that old are outperforming new buildings in terms of pricing. She says square footage in the Yonge St. corridor is going for $900-$1000, the waterfront is at $1,000 while downtown east is getting $700, and that Vaughan “never punched over $500 unless it was a luxurious project but now it’s well over that threshold and that’s made it viable for developers to jump in.” But will buyers? We’ll have to wait and see.
In this column, we’ll examine Toronto’s intense condo market－the players, the projects, the trends and more. I welcome your comments, questions and story ideas so please contact me through my website!
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Suzanne Wintrob is a Toronto-based journalist specializing in real estate and business. Check her out at .
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