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.
Let's get into it.
Quick Summary
- The population growth has fueled demand for housing, leading to a surge in real estate prices and development activity.
- There has been a surge in condominium construction to accommodate downsizing homeowners, with the number of condos increasing by 52% between 2016 and 2023.
- Downsizers are increasingly choosing condos over detached homes, with condo sales representing 43% of all residential sales in Toronto.
Midtown
- ANX // Freed - Dupont + Spadina
- Maven // Empire - Avenue + Dupont
- Auberge // Tridel - Eglinton + Leslie
- 321 Davenport // Alterra - Davenport + Bedford
- 900 St Clair // Canderel - St Clair Ave W + Alberta
- Uovo // Sher Corp - Yonge + Davisville
West End
- Edenbridge // Tridel - Humbertown Plaza
- Kingsway Crescent // Dundas + Humber River
- Bijou on Bloor // Plaza - Bloor West + Jane
- Junction Point // Gairloch - Dundas + Anette
- Mirabella // Diamante - Lake Shore + Windermere
Downtown
- Aqualuna // Tridel - Queens Quay + Lower Sherbourne
- One Yonge // Pinnacle - Queens Quay + Yonge St
- 123 Portland // Minto - Portland + Adelaide
East End
- The Poet // Fieldgate - Queen E + Leslie
- Terrasse at Hunt Club // Sunrise Gate - Kingston + Warden
1. Fewer renters are better
Nobody wants to live in a building where chairs get thrown from the balcony… generally, it's best to avoid density and anything that allows Airbnb.
This typically leads to a much quieter, more enjoyable living environment
In my experience, the higher the density of a building and the higher the concentration of renters - the more likely you’ll experience issues like noise complaints, building wear and tear from people moving in and out, etc. [1].
2. Boutique over high rise any day
This one can vary depending on what you’re looking for, and where you want to be. However, as a general rule of thumb - boutique buildings tend to be better buildings to live in.
Take it from someone who has lived in both a 500-unit building and a 100-unit building - a boutique is better.
A lot of the time, the issues people have with “condo living” can be avoided by just going with a boutique. With a boutique build, you never/rarely have to worry about things like elevator issues, rush hour traffic, or circling down 5 levels of underground parking to get to your spot.
They tend to be far quieter and often boast better resale and rental values due to the lack of supply - not that it’s the most important consideration, but nonetheless, it’s something.
Granted, I’m not saying that all high-rises are scourged by elevator issues or lots of renters, but you have to do your homework to avoid those buildings.
3. Pre-construction can be more expensive
The general rule of thumb for you here is that pre-construction tends to be 10-20% more expensive than resale (second-hand) condos.
There are some exceptions to this rule - I’ve sold numerous pre-construction units cheaper than resale, and I’ve also seen some pre-con units asking +30% over market value as well.
There are natural benefits to buying pre-construction, not the least of which is being the first to own a brand new unit, but you’ll want to make sure you’re not grossly overpaying.
Case in point, clients of mine in a big old 5-bedroom detached recently reached out to me to downsize.
We looked at a couple of pre-construction options around the midtown area, and they fell in love with one in particular… it was $1.7M.
My clients were adamant that they wanted to sign for that unit. I put it on hold for them but asked them to meet me at an existing unit down the street for a quick peek.
It was 400K cheaper than their pre-construction choice, but in my opinion - way better. They fell in love with the resale unit, and bought it the same day.
We’re renting it out for the next few years because they’re not ready to downsize just yet.
The lesson here is to remain flexible - don’t get too caught up on any particular option, and be willing to see some alternatives.
Downsizing Trend Continues
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://apartmentagents.com/2017/03/01/large-apartment-buildings-versus-small/
