It’s no secret that Toronto’s home and condo prices have increased dramatically over the years. Rapid population growth, a strong economy, and investment interest have all contributed to rising costs. But some Toronto neighbourhoods have actually managed to double their prices in a mere five years.
A new study by Zoocasa looked at the average home and condo prices of 35 MLS districts in Toronto. They found that eight neighbourhoods saw the cost of condos double between July 2014 and July 2019. Homes, however, only doubled in two areas in that time period.
The neighbourhood that saw the biggest price growth in a five-year timeframe was district E10 (West Hill, Centennial Scarborough) for their condos. Since 2014, prices have jumped a whopping 147 per cent! The average condo now goes for $340,000 compared to $138,000.
Districts E08 (Scarborough Village, Guildwood) and E11 (Malvern, Rouge) came in second and third for biggest price jumps for condos. They increased by 140 and 128 per cent, respectively, in the past five years. Condos in E08 now average $424,000 compared to $176,000, while condos in E11 average $377,000, up from $165,000.
“Neighbourhoods with condos priced below the city average saw the sharpest increase over the timeframe; of the neighbourhoods that doubled, seven of eight remain priced below the $500,000-mark in 2019, and were well below the $250,000-mark in 2014,” Penelope Graham, Zoocasa’s managing editor, explained in the report.
Interest in condos has been growing since they’re considered a more affordable option to other types of properties. But while condo sales in the City of Toronto dipped by 12 per cent year over year in Q2 2019, sales have soared in the GTA by 77 per cent. This is due to their more affordable pricing and transit accessibility, Urbanation Inc. reports.
Currently, the average condo price in Toronto is $627,927, which is up by 66 per cent from 2015.
So what about Toronto homes? According to Zoocasa’s report, only districts C03 (Forest Hill, Oakwood Village) and C08 (Regent Park, St. James Town, Corktown) doubled their cost in the past five years. Prices in C03 increased from $920,000 to $2 million (up 121 per cent), and prices in C08 rose from $887,000 to $1.7 million (up 101 per cent).
The rising cost in Regent Park might come as a surprise. However, thanks to the revitalization project launched by the City of Toronto and the Toronto Community Housing Corporation, Regent Park might be the next up-and-coming neighbourhood. After all, the area had its first $1-million condo sale earlier this year.
Overall, the majority of Toronto neighbourhoods only experienced a 25 to 49 per cent growth in home prices in the past five years. The average price of detached and semi-detached homes is now $1,167,968, which is an increase of 42 per cent.