GTA condo prices are anything but low, but you can find some that are slightly more reasonable if you know where to look.
According to Strata.ca, the five neighbourhoods are Old East York in East York with an average of $495,000; Flemingdon Park in North York with an average of $495,000; West Mall in Etobicoke with an average of $550,000; Dixie-Applewood in Mississauga with an average of $599,000; and Thornhill in Markham with an average of $639,000.
These five neighbourhoods give GTA homebuyers more bang for their buck. For example, in Old East York, multi-bedroom condos can be found for under $500,000, including a two-bedroom for $449,900 and a three-bedroom for $475,000.
According to the report, theWest Mall area notably has seen a decrease in average condo sale prices in the last 60 days, dropping 4% overall to bring its average down to $550,000. There, you can find a 3-bedroom plus den listed for $549,000 and a two-bedroom plus den for $519,900.
According to the report, all of these below-average price areas are dominated by what the industry calls “1st generation condos.” These are condo buildings built in the 70s and early 80s and “offer some of the best price-per-square-foot value in the city.”
Nathaniel Hartree-Hallifax, a real estate agent at Strata.ca, says that presently low immigration rates are likely causing these GTA condo prices to remain low.
“The value found in 1st generation condos is enough to attract many first-time buyers, including new Canadians getting on the property ladder,” Hartree-Hallifax said. “But given there are fewer immigrants moving to the GTA at this time, I think it’s easy to see why prices are softening in these neighbourhoods.”
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Although scooping up a lower-priced condo is certainly appealing, the report says there are a few things to consider before buying a first-generation condo, namely the fact that they often lack modern conveniences and may not have the infrastructure for future upgrades.
“Given the chance to build equity, many people will forgive the fact that there’s no ensuite laundry or central air conditioning,” Hartree-Hallifax said. “And they may think these things can be added later through renovations. But understanding which buildings can be improved and which can’t is crucial. This will have an important impact on price and resale value.”
Prices in GTA suburbs, including Markham and Mississauga, have soared over the past year, but Broker of Record at Strata.ca, Robert Van Rhijn, says that it’s still possible to find homes here below the GTA average.
“People who want to make the move to the suburbs can find pockets in Mississauga and Markham where condo prices are still relatively cheaper,” Van Rhijn said. “In the Mississauga neighbourhood of Dixie-Applewood, for instance, the appreciation rate over the past 60 days remains modest at just 1%.”
So even though finding a condo in the GTA under $600,000 may seem like a nearly impossible feat, these five areas offer potential home buyers a bit of hope.