In the market for a condominium in Toronto and curious how much it will cost you? We collected data on more than 7,000 sales to answer that exact question by pinpointing the average price per square foot of condos across the city.
The study’s findings put front and centre how the price per square foot (ppsf) in Toronto has never been higher. The city-wide average for Toronto was found to be $629, a 26% jump from the same time last year.
Arguably the most shocking fact was that average sold prices of condominiums in downtown hit $801 psf – up an even more pronounced 28%. However, prices of course vary by neighbourhood (as showcased in the chart).
- Waterfront Communities primarily overlaps with downtown’s Fashion and Entertainment Districts
- Niagara includes notable areas Liberty Village and Fort York
Why psf is the measure to watch
By analyzing prices of condos relative to their dimensions, buyers and sellers are made more aware of what units are going for and can, therefore, make more informed decisions with a relevant comparison.
For example, if a one bedroom condominium is priced at $300,000 and the overall average price of units in the area is $400,000, it may seem like you’re getting a deal.
However, when accounting for size, you may find you are paying $700 psf, while other units tend to go for $600. As a result, it is actually overpriced relative to how big (or more appropriately, how small) the condo is. Moreover, price psf makes it easier to compare prices across different areas. Especially if one neighbourhood has smaller properties compared to another.
How we crunched the data
In simple terms, price per square foot is calculated by taking the average sold price of condominiums in a particular area and dividing that figure by the average size of units. (The Multiple Listings Service (MLS) provides square feet information based on ranges.)
Along with analyzing prices for the entire city, we broke down prices on a neighbourhood level for major condo hubs that experienced at least 200 sales. Mississauga City Centre was the only neighbourhood factored in the analysis located outside of Toronto and references the area directly anchoring Square One shopping centre.
The big takeaway
First and foremost, the study clearly showcases how 2017 is on track to be a record-hot year for the condo market. Outside of Islington City Centre on Toronto’s west side, no major condo neighbourhood saw its average price psf drop below $600. Moreover, the study brings to light how downtown is quickly becoming out of reach for condo hunters whose budgets sit in the $300,000’s.
While average price psf is hugely illuminating for condo hunters, it’s worth noting the metric is not always a sure-fire means of comparing condos. For one, units in new buildings tend to boast a higher price psf than their older neighbours. Plus, price psf only measures the value of a unit relative to its size, not the amenities or finishes offered. So if a luxury condo comes complete with all the bells and whistles of spa amenities and a high-end lobby, don’t be shocked if its price psf wildly outpaces the area’s average.
Hyder Owainati is a market analyst at TheRedPin, a Toronto-based real estate brokerage
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