According to our research of condos for sale in Toronto, only 263 of the 16,430 units sold between June 2014 and 2015 were studio apartments. That’s less than two percent of the city’s condo market.
Based on a snapshot of the city’s most active condo neighbourhoods (areas with 100 condos sales or more), the average price of a studio in Toronto is $240,537.
As expected, two bedrooms condos were the most popular with condo buyers in Canada’s largest city, taking the lead on the sales front with 7,852 units changing hands in the past year, or about 48 percent of the market. Two bedroom condos fetched for an average of $453,944.
One bedroom condos were at a close second, accounting for a total of around 43 per cent of total sales and averaging for a price of around $335,224.
This effectively signifies a price gap of nearly $118,720, or 30 per cent, between a one and two bedroom condo in Toronto, meaning it costs more than $100,000 for that one extra bedroom.*
In terms of Days on Market, and discovering whether one bedroom or two bedroom condos get snatched off the market faster, we found that overall, there is no discernible difference. From our sample of neighbourhoods, days on market for one bedroom condos sits at around 30 days compared to 31 days for two bedroom units.
Three bedroom units aptly took third place, representing a minority of about 6.8 percent of total condo sales.
Overall, three bedroom condos in Toronto sold for an average of $499,115, however the lower than expected figure is likely due to the fact the majority of three bed units are found outside of Toronto central and in areas further east and north (where real estate price-points are significantly lower). In fact, when isolating neighbourhoods in central Toronto, average prices of three bedroom condos shot up to $743,010, even spiking to the million dollar mark when isolating condo-heavy neighbourhoods such as the Bay Street Corridor.
When delving deeper, we found that in the largest condo markets in the city’s core – areas such as the Church-Yonge Corridor, Niagara and the Waterfront Communities – one bedroom condo sales trumped their two bedroom counterparts. This likely feeds into the fact of how rentals for one bedroom apartments in Toronto are nearly twice as high for one versus two bedrooms, as the majority of rentals occur in the downtown core.
Top Facts:
1.Studios represent less than two percent of condos sales
2.Average price of a studio in Toronto is $240,537
3.Two bedroom units are the most popular with condo buyers, with 48 percent of total Toronto sales
4.Average price of a two bedroom condo in Toronto is $453,944
5.One bedroom units account for 43 percent of the Toronto condo market
6.Average price of a one bedroom condo in Toronto is $335,224
7.Average Days on Market for one and two bedroom units are 30 and 31 days respectively
Pros of One Bedroom Condos:
•Rentability
If you’re looking to earn back on your condo investment in the long-term by renting it out, it’s often the better move to purchase a one bedroom unit. For one, the lower lease rates are more appealing to renters, and more often than not, those looking to rent are young professionals who are single.
Moreover, if you’re planning on renting your unit, it’s almost always the case that you should pick a neighbourhood in the downtown core – and since prices go up the more central the location – you can save more by opting for a one bedroom.
Not to mention, the numbers are in favour of one bedroom units, with one bedroom rentals in Toronto nearly doubling two bedroom units.
Average lease rate of a one bedroom condo in Toronto = $1,642
•Price
With a considerable price gap of around $118,720 between one and two bedroom condos in Toronto, from a financial stand-point, one bedroom units are obviously the more affordable option.
For first-time buyers and those looking to minimize risk and the financial cost of hefty mortgage payments, one bedroom units are the better route.
•Condo Fees
While condo fees depend on a huge slew of factors, as fees are calculated by square footage and one bedroom condos are predominately smaller than two bedrooms, fees will be considerably less in single bedroom condos.
Pros of Two Bedroom Condos:
•Appreciation
According to the Toronto Real Estate Board (TREB), the average price of a condo in Toronto increased by nearly 5.8 percent over last year. While that spike may translate to an increase of $20,000 for a one bedroom unit, for a two bedroom condo, the figure stands at around $26,000.
Over the years, this can represent a marked difference and prove the most effective option in terms of seeing a return on your investment when selling your condo down the line.
•Appeal on the market
While simply stating that a two bedroom condo will carry more appeal is overly simplistic, as a number of forces influence the sell-ability of a condo from its build quality, age, location etc., it’s worth noting that with ever-increasing prices of single family houses, more and more young families are expected to go the condo route over that of a single family home – likely upping the appeal of a two bedroom condo over that of a one bedroom.
•Size
It’s no secret that two bedroom condos offer more square footage, and with the current trend of smaller units and micro-suites, that extra bedroom can prove valuable from both from a life-style end as well as from a resale angle in the future.
We hope you are finding our Blog informative and enjoyable to read while keeping you up to date with the ever changing real estate market.
Please feel free to contact me via Direct/Text or e-mail at any time and my team will be pleased to assist you, family members and friends with all your real estate needs. Referrals are always welcome!
No comments:
Post a Comment