Toronto bungalow hits the market with a $2.8 million asking price

A little two-bedroom bungalow hit the Toronto market recently with a seemingly jaw-dropping $2.8 million asking price.

As it stands, the less than 1,100 square foot home, located at 16 Kenrae Road in East York, is priced significantly higher than other similarly-sized Toronto bungalows. But according to the seller, Reza Ghazi, it’s more than meets the eye.

“This property is not for a standard end-user,” Ghazi told Daily Hive. “So if you are a family of two, three, four, and you’re looking to buy a property, this is not the property if you want to, frankly, just make that your home.”

Easy List Realty

Instead, the sale is geared towards builders who would be looking to redevelop the plot of land. The property, Ghazi says, has already been given approval from the Toronto Local Appeal Body (TLAB) for the construction of two, two-level, 1,600-square-foot semi-detached homes — a type of new build that is extremely rare in the area.

“If you’re looking at the whole neighbourhood and if you look at the City’s website for similar types of properties obtaining TLAB approval in the past 21 years, you don’t see anything,” Ghazi said. “So, in this area, you can’t find semis that are recently built. They’re mostly 75 to 80 years old.”

Rendering of a possible semi-detached build. (Easy List Realty)

Properties selling in the surrounding area are typically going for $1,600-$1,700 per square foot. Even factoring in the asking price and the cost of building the semidetached homes, Ghazi says that the buyer would still turn a profit.

“If somebody builds our property, they should be probably get, by the time they’re done… $2.7 million for each of these semis,” Ghazi said.

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Easy List Realty

The listing describes the home that’s currently on the property as “in slightly above average condition” and “perfectly livable.” Ghazi says that it would be possible for a buyer to rent it out for a time before moving forward with a new build.

Easy List Realty

Although spending $2.8 million on a Toronto bungalow may not be attractive to every buyer, Ghazi notes that it’s “not an apples to apples kind of comparison to the other bungalows that you see in the neighbourhood.” They’re looking for the right buyer who sees the potential in the property.