Condominium appreciation outpaces single-detached housing values in key GTA districts in 2007, says RE/MAX



    2007 Year of the Condominium

    MISSISSAUGA, ON, Jan. 23 /CNW/ - Condominiums experienced unprecedented
upward pressure on average price in 2007, surpassing gains reported in the
single-detached category for the first time in key GTA districts, including
the central core and west end.
    According to RE/MAX Ontario-Atlantic Canada, the average price of a
condominium rose 12.2 per cent in the central core in 2007 ($327,559 vs.
$292,064) while values in the west end jumped 7.3 per cent from $215,036 to
$230,749. Statistics for single-detached homes reveal an 11.5 per cent
increase in average price in the central core ($910,906 vs. $816,938) and a
6.6 per cent increase in the west ($417,407 vs. $444,945) during the same
period.
    "Condominiums are clearly a viable - and now financially feasible -
alternative to single-detached housing," says Michael Polzler, Executive Vice
President and Regional Director, RE/MAX Ontario-Atlantic Canada. "With so many
purchasers forced to compromise on their choice of housing, the ever-growing
return on investment in the condominium market is proving to be quite the
consolation prize."
    Despite higher prices across the board-approximately 20 per cent, or 12
of 63 Toronto Real Estate Board Districts, experienced a double-digit increase
in average price in 2007 - the condominium lifestyle allows purchasers to live
in the GTA's most coveted communities at a fraction of the price of a
single-detached home. The best performing markets in 2007 include top-ranking
Bayview Village (C15), leading with a 28.9 per cent increase in average price
year-over-year ($241,611 vs. $340,113); Yorkville, Annex (C02) in second place
with a 23.9 per cent increase ($494,861 vs. $650,379); and Rosedale,
Summerhill (C09) in third place, with values 17.2 per cent ahead of 2006
figures ($462,067 vs. $558,435). Forest Hill, Deer Park (C03) and Swansea,
Roncesvalles, South Parkdale (W01) both tied at 14.8 per cent - $514,823 vs.
$604,924 and $246,900 vs. $289,872 respectively - claiming fourth place, while
SE Mississauga, Applewood, Rathwood (W14) rounded out the top five at
14.6 per cent ($180,279 vs. $211,185).
    "Condominiums now outsell single-detached homes two to one in the central
core," explains Polzler. "Condo sales have accounted for an increasing
percentage of the marketplace in the central, west, and northern districts
since 2005. The trend is expected to continue as affordability levels
diminish, particularly in the central core. It's also important to recognize
that the vast majority of these purchasers are end-users and speculation is a
rare occurrence in the resale condominium market."
    Although they carry some pretty hefty price tags, single-detached homes
continued to post solid gains as well, with approximately 21 per cent or 13 of
63 Toronto Real Estate Board districts, reporting increases over 10 per cent
in 2007. The best return on investment occurred yet again in proven blue chip
neighbourhoods. Forest Hill (C03) led the way with a 17.4 per cent increase in
average price in 2007, rising from $849,697 in 2006 to $1,028,960. Leaside
(C11), Lansing, Willowdale (C07), and Bathurst Manor, Armour Heights (C06)
placed second, third and fourth, with prices rising 14.2 ($791,083 to
$922,607), 13.4 ($537,891 to $621,185), and 12.2 per cent ($523,736 to
$596,551) respectively year-over-year. Thriving Port Credit (W12) placed a
strong fifth with a percentage increase of 11.7 per cent in average price,
bringing single-detached housing values in the area to $577,461 from $509,380
in 2006.
    "When it comes to bricks and mortar, homeownership can be
cost-prohibitive," says Polzler. "The surge in condominium sales and prices is
a glimpse at the future. Not only is the condo lifestyle more widely accepted,
it is also highly coveted by many. Location, price, amenities, views,
low-maintenance living - it's the ideal package for a growing number of
purchasers. As such, price growth and demand are expected to continue strong
into 2008."

    RE/MAX is Canada's leading real estate organization with over 17,500
sales associates situated throughout its more than 640 independently owned and
operated offices across the country. The RE/MAX franchise network, now in its
34th year of consecutive growth, is a global real estate system operating in
over 65 countries. More than 7,000 independently owned offices engage 120,000
member sales associates who lead the industry in professional designations,
experience and production while providing real estate services in residential,
commercial, referral, relocation and asset management. For more information,
visit: www.remax.ca.

    
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    Toronto Best Return on Investment Neighbourhoods
    ------------------------------------------------

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    Top Five Districts by Price Appreciation
    Condominium (Apartment and Townhomes)(*)
    -------------------------------------------------------------------------
    Rank  District  Neighbourhood(s)          2006        2007
                                             Avg. $      Avg. $        % +/-
    -------------------------------------------------------------------------
    1     C15       Bayview Village         $241,611    $340,113        28.9
    -------------------------------------------------------------------------
    2     C02       Yorkville, Annex        $494,861    $650,379        23.9
    -------------------------------------------------------------------------
    3     C09       Rosedale, Summerhill    $462,067    $558,435        17.2
    -------------------------------------------------------------------------
    4     C03       Forest Hill, Deer Park  $514,823    $604,924        14.8
    -------------------------------------------------------------------------
    4     W01       Swansea, Roncesvalles,
                     South Parkdale         $246,900    $289,872        14.8
    -------------------------------------------------------------------------
    5     W14       SE Mississauga,
                     Applewood, Rathwood    $180,279    $211,185        14.6
    -------------------------------------------------------------------------
    Top Five Districts by Price Appreciation
    Detached Homes(*)
    -------------------------------------------------------------------------
    Rank  District  Neighbourhood(s)          2006        2007
                                             Avg. $      Avg. $        % +/-
    -------------------------------------------------------------------------
    1     C03       Forest Hill, Deer Park  $849,697  $1,028,960        17.4
    -------------------------------------------------------------------------
    2     C11       Leaside                 $791,083    $922,607        14.2
    -------------------------------------------------------------------------
    3     C07       Lansing, Willowdale     $537,891    $621,185        13.4
    -------------------------------------------------------------------------
    4     C06       Bathurst Manor,
                     Armour Heights         $523,736    $596,551        12.2
    -------------------------------------------------------------------------
    5     W12       Port Credit             $509,380    $577,461        11.7
    -------------------------------------------------------------------------
    Source: RE/MAX, Toronto Real Estate Board (TREB)

    (*) Based on districts reporting over 100 sales per annum
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For further information:

For further information: Christine Martysiewicz, RE/MAX Ontario-Atlantic
Canada, (905) 542-2400; Eva Blay, Charlene McAdam, Kim Kofman, Point Blank
Communications, (416) 781-3911


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