Investing in a the city’s real estate can yield high rewards if buyers know what Toronto neighbourhoods are the hottest up and coming locations.
According to a new report from Strata.ca, the three Toronto neighbourhoods that saw the greatest appreciation over the past year are traditionally overlooked areas: Jane and Finch, Rexdale, and Malvern. These three areas far outpaced the city’s average appreciation value of 2%, with some condo buildings going up by more than 20% in value.
Malvern saw an overall increase of 14% over the past 12 months, and Jane and Finch saw an 11% increase. One Rexdale condo building in particular, King’s Terrace Condos, located at 6 Humberline Drive, saw a whopping 23% appreciation in its condos’ property value over the last year.
But it was 10 Eddystone Avenue in the Jane and Finch area that saw the biggest appreciation rate of all, with its units going up by an average of 25% in the last 12 months.
These numbers come as a stark contrast to the downtown core, which saw an overall 6% depreciation over the past year, the report says.
Strata.ca also found the actual number of condo buildings offering the best return on investment for buyers are concentrated in Jane and Finch, Rexdale, and Malvern.
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Broker of Record at Strata.ca Robert Van Rhijn believes immigrant populations are driving appreciation rates in outer-lying areas, which also includes North York, Etobicoke, and Scarborough.
“Many immigrants may not have the means to purchase in the heart of the city,” Rhijn said. “And because prices downtown are typically higher, people usually look to outlying neighbourhoods for better value.”
This trend increases demand and drives up the value in the area, something Strata.ca has found sellers in Jane and Finch, Rexdale and Malvern have benefitted from over the past year.
Van Rhijn expects that we will continue seeing these traditionally-overlooked neighbourhoods rise in value, and as they do so, some level of gentrification will likely occurring in the coming years.
“As prices rise, we’ll undoubtedly see the typical signs of gentrification occur,” he said. “That means more boutique shops, restaurants and other amenities popping up in these areas.
Investors would be smart, Van Rhijn says, to start looking into these neighbourhoods now.