Understanding Toronto's downsizer precondominium market is crucial for making informed real estate decisions. This comprehensive guide provides expert insights, current market data, and actionable strategies to help you navigate the downsizing process successfully.
Should you be considering the transition from a detached home to a condominium, it's essential to recognize that condominiums vary significantly in their offerings and quality.
After years of selling hundreds of pre-construction and resale condos, there are a few things that stand out to me as the most important factors to consider when looking to downsize.
Quick Summary
- The population growth has fueled demand for housing, leading to a surge in real estate prices and development activity.
- In the first half of 2024, combined new home starts in Canada’s 6 largest CMAs (Vancouver, Calgary, Edmonton, Toronto, Ottawa, Montréal) reached 68,639 units, a 4% increase from the same period in 2023.
- Downsizers are increasingly choosing condos over detached homes, with condo sales representing 43% of all residential sales in Toronto.
Top Downsizer Precondominium Projects by Area
| Project Name | Developer | Location | Area | Building Type |
|---|---|---|---|---|
| ANX | Freed | Dupont + Spadina | Midtown | Boutique |
| Maven | Empire | Avenue + Dupont | Midtown | Mid-Rise |
| Auberge | Tridel | Eglinton + Leslie | Midtown | High-Rise |
| 321 Davenport | Alterra | Davenport + Bedford | Midtown | Boutique |
| 900 St Clair | Canderel | St Clair Ave W + Alberta | Midtown | Mid-Rise |
| Uovo | Sher Corp | Yonge + Davisville | Midtown | Boutique |
| Edenbridge | Tridel | Humbertown Plaza | West End | Low-Rise |
| Kingsway Crescent | - | Dundas + Humber River | West End | Mid-Rise |
| Bijou on Bloor | Plaza | Bloor West + Jane | West End | Boutique |
| Junction Point | Gairloch | Dundas + Anette | West End | Mid-Rise |
| Mirabella | Diamonte | Lake Shore + Windermere | West End | High-Rise |
| Aqualuna | Tridel | Queens Quay + Lower Sherbourne | Downtown | High-Rise |
| One Yonge | Pinnacle | Queens Quay + Yonge St | Downtown | High-Rise |
| 123 Portland | Minto | Portland + Adelaide | Downtown | Mid-Rise |
| The Poet | Fieldgate | Queen E + Leslie | East End | Mid-Rise |
| Terrasse at Hunt Club | Sunrise Gate | Kingston + Warden | East End | Low-Rise |
Downsizing Trend in Toronto
Toronto is experiencing a significant shift in its housing landscape as many homeowners, especially those aged 65 and older, are choosing condos over detached homes. This trend reflects a desire for a more manageable lifestyle, with fewer maintenance responsibilities and easy access to urban amenities [1].
Downsizing homeowners are driving condo demand, shaping Toronto's real estate market and fueling further condo development.
Essential Tips for Downsizing to a Condo
When downsizing, certain factors can greatly impact your experience. Here are some key points to keep in mind:
Building Selection Criteria
- Opt for Lower Density: Avoid condos with high renter density or Airbnb units. Lower-density buildings are quieter and typically offer a more enjoyable environment with fewer disruptions.
- Choose Boutique Buildings: Boutique condos (typically under 100 units) offer a more personal and manageable experience. They often have fewer elevator issues, quieter hallways, and higher resale values due to limited availability.
Financial Considerations
- Weigh Pre-Construction Costs Carefully: Pre-construction condos can be 10-20% more expensive than resale units. While the appeal of a brand-new unit is strong, make sure you're not overpaying. Always explore comparable resale options, as they may offer more value.
Real-Life Downsizing Story: Stay Flexible
One of my clients, a couple ready to downsize from their 5-bedroom home, initially planned to buy a $1.7M pre-construction condo in Midtown. Before they committed, I showed them a comparable resale condo nearby. They were surprised to find it $400K cheaper and ended up purchasing it the same day. Now they're renting it out until they're ready to move in.
Lesson: Stay flexible, consider various options, and remember that pre-construction isn't always the best choice.
FAQs
1. What is the average cost difference between pre-construction and resale condos for downsizers?
Pre-construction condos typically cost 10-20% more than comparable resale units. However, this premium can sometimes reach $400K or more in premium markets like Midtown Toronto.
2. How do I determine if a building has high renter density?
Ask your realtor for rental statistics and check with property management about short-term rental policies. Buildings with over 30% rental units may have higher turnover and noise levels.
3. What defines a boutique condominium building?
Boutique condos typically have under 100 units and offer more personalized management, fewer elevator wait times, and often higher resale values due to limited supply.
4. When is the best time to purchase a downsizer precondo in Toronto?
Market timing depends on personal circumstances, but many downsizers benefit from purchasing during fall/winter months when there's less competition and more negotiating power.
5. What maintenance fees should I expect in a new condominium?
New condos typically start with lower maintenance fees ($0.45-$0.65 per square foot) but expect increases as the building ages and requires more maintenance.
6. How long does the downsizing process typically take?
The downsizing process usually takes 6-12 months from initial decision to move-in, including time to sell your current home and complete your condo purchase.
Downsizing Made Simple
The demographic shift towards downsizing among Toronto homeowners, particularly those aged 65 and older, is reshaping the city's real estate landscape.
With a significant increase in condo construction and a growing preference for urban living, downsizing individuals are driving demand for smaller housing options. As Toronto's population continues to age, this trend is expected to persist, highlighting the importance of catering to the evolving needs of homeowners in the city's housing market.
If you want more info on any of the above or have questions please reach out at jordon@precondo.ca and check out Precondo.ca.
References:
- https://assets.cmhc-schl.gc.ca/sites/cmhc/professional/housing-markets-data-and-research/market-reports/housing-supply-report/2024/housing-supply-report-2024-fall-en.pdf
