Which Age and Location Categories of Condo Buildings (Toronto or North York) Had the Highest Price Growth Over a 9 year Period 2010-2019?
It’s been 10 years of GTA condos’ dramatic price growth. Condo Business Intelligence team revealed clear tendencies in Condo average price growth related to Condo building age and a location
Condo prices have been rising steadily over the last 10 years, but not for all condos. Potential condo investors might have reasonable questions, such as:cWhen was the most significant condo price growth?
- Where (Toronto or North York) was higher for condos’ average price growth?
- Which condo age categories have the highest prices and what are the tendencies?
- Which age categories of condo buildings should one select for investment to expect the highest price growth, and which condo age categories were the most profitable for investors in terms of the price growth during the last 9 years?
- Where are condos with the highest price growth located? Which location and building is best to select for a condo investment?
- Which condo builders build high quality buildings that naturally generate a higher price growth than the other buildings?
- Which property management companies manage condo buildings that had a higher price growth than the other buildings?
To find the answers to those questions Condo BI analyzed two sets of condo average prices data:
- Toronto Condo’s market prices for 2010-2019 years and
- North York Condo’s market prices for 2010-2019 years.
1. When did the most significant condos’ average price growth happen?
2. Where, in Toronto or in North York, there was a higher Condo price growth?
While Toronto condos’ average prices were higher, the total 2010-19 average price growth for condos in North York was slightly higher – 94 % comparing to Toronto – 90%.
Table #2 shows that condos’ average price growth for North York condos was higher than for Toronto condos with some exclusions in favour of Toronto in 2010, 2011 and 2017 years.
The graph #1 shows that condo prices have almost doubled over the last 9 years. Graph #1, graph #2 and table #1 show the highest average price growth was in 2016-2017 (22.5% for Toronto and 26% for North York). Average condo prices in Toronto are significantly higher than in North York. According to table #1 – “Average Price” tab, average Toronto condos’ prices are approximately 51-57% higher than in North York.
3. Which Condo age category might bring a higher capital gain? And Condo which age Category and location require less investment?
Graph #4 shows a different behaviour of condo’s average prices depending on the building age. The price level decrease relating to the condo age and the highest prices are for new Toronto condos. But we can see a different price behaviour for condos in North York. Average prices of North York condos age 0 to 25 years old are approximately the same with exclusion for 10-15 years condos which are ~5-6% lower. There is a dramatic leap of prices for condos 35-50 years old. The average price level of those buildings are above that of Toronto condos.
We can make a conclusion that in Toronto, the highest average prices (~$1,032/SF) are for the newest condos and the prices are decreasing at the age of 35-50 years old to $721-$708 / SF.
But there are approximately one average price level (~$600 – $670/SF) for condos aged 0–25 with a decreasing price for condos 25-35 years old, and for condos of 35-50 years old average price level is $756 – $708 / SF in North York.
4. Which age categories of condo buildings would be reasonable to consider for investment to expect the highest price growth? Which condo age categories might be the most interesting for investors in terms of the price growth, during the last 9 years?
Taking into account that condos’ average prices in North York are ~50-57% lower than in Toronto and the average price growth was higher for North York’s condos during the last 9 years. It must be reasonable to say that investing a less amount of money in a condo in North York would mean the investor should expect a higher capital gain than in Toronto.
And if the investor is interested in a long-term investment, it might be reasonable, based on graph #5 and table 3 to consider 20-25 year old buildings in Toronto (when the price is relatively lower but the annual average price growth was the highest) and the annual price increase was the minimum for 35-40 year old buildings. Or consider 20-25 year old buildings in North York that might expect a high price growth by the time they are 35-40 years old and might be good for sale (having the highest price, according to graph #4).
But the character features and quality of a particularly aged building should be considered. The high average price growth of North York condos might be related to bedroom size differences, quality of building materials, amenities etc. The fact that 35-50 year old condos in North York have larger rooms, are more expensive, and have a higher quality of exteriors than new buildings in downtown Toronto that have small bedrooms and are built mostly of glass and metal.
5. Where are Condos with the highest price growth taking into account the age category located?
Map #1 shows the condo buildings that have the highest annual average price growth. There are some other data like the builder’s name, property management company’s name, price growth, % per year, and condominium name.
The tables #4 and #5 show us the lists of condo buildings, divided by age categories, with the highest annual price growth.
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