Toronto’smid-risesectorisontheuprise · Rosedale. 2story, 3bedrooms plus den, private patio,...
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Janice Fox Broker of Record • 416-924-3779 • [email protected] 36 Astley Ave. $3,495,000 Family friendly in prime Rosedale. Steps to Chorley Park. 3 stories, 5 bedrooms, 6 baths, open concept kitchen and family to opening to a sunny west facing yard. Built in garage. 100 Harbour St. Penthouse 102 $6450 / month Top of the top breathtaking city & lake views. Corner suite,3 bdrms, 2 decadent bths, wrap around balcony, 1529 sq ft. 55 Scollard St. 803 $1,650,000 Large north east corner, with balcony. Large 1 bedroom, 2 baths, floor to ceiling windows, 1 parking. Enjoy full hotel amenities 415 Glengrove Ave. $3,849,000 Perfect newly built home, 5 bdrms, 6 baths, huge entertaining and family space, loaded with thoughtful luxurious extras. Sunny south yard, 50‘ lot. 55 Scollard St. 801 $6950 / month 1 bedroom plus separate den, 2 baths, 1260 sq ft in Four Seasons Private Residences. Enjoy full hotel services. Valet parking included. 55 Scollard St. 201 $1,755,000 Ideal city living in the luxurious Four Seasons. Almost 1200 sq ft,1 large bedroom, spacious open living & dining room. 2 baths, 2 balconies, 10 ft ceilings. 50 Yorkville Ave. 2803 $4,950,000 Four Seasons Private Residences, almost 2500 sq ft on the sunny south east corner. 2 bdrms + den, custom designed, 2 parking spots. 55 Scollard St. 605 $10,000 / month 2 bedrooms plus separate den overlooking the south garden, over 1800 sq ft of luxury. 3 baths, long 20 ft balcony. Available immediately. 50 Yorkville Ave. 5401 $12,900,000 The epitome of decadent luxury in the sub penthouse of Four Seasons. Over 3900 sq ft, 2 balconies, 12 ft ceilings, custom designed throughout. 99 Glen Rd. $10,000 / month Spectacular modern new townhome in the heart of Rosedale. 2 story, 3 bedrooms plus den, private patio, garage. Move in immediately. 55 Scollard St. 2601 $2,795,000 Exceptional north west corner with stunning sunset views, almost 1600 sq ft, 2 bdrms, 3 baths, 20 ft balcony, open concept entertaining space. 100 Harbour St. Penthouse 201 $6400 / month Watch the planes glide in over the lake,1522 sq ft, 2 bdrms, 3 baths, + sep. den, powder rm. 10 ft clgs. wrap around balcony. H12 G THE GLOBE AND MAIL | FRIDAY, MAY 31, 2019 | REAL ESTATE N ot all condominiums are created equal, and in the Toronto area po- tential buyers can expect very dif- ferent amenities, pricing and life- styles at buildings described as mid-rise (under 12 storeys) compared with those de- scribed as high-rise (12 storeys and up). Real estate is full of narratives, and one particularly interesting one has been to de- scribe mid-rise as “luxury” product, be- cause of its typically higher costs a square foot, coupled with what is typically a larger square footage per unit as well. But if you listen to salespeople pushing some new mid-rise launches, mid-rise may cost more than high-rise upfront, but shorter build- ings may also outperform their tall rivals in terms of appreciation over time. Riz Dhanji, president of RAD Marketing, leads the sales and marketing effort for a mid-rise condo project by Canderel, a Mon- treal-based residential and commercial de- veloper, at 900 St. Clair West in Toronto. When looking to build his pitch for the mid- rise, he looked at the comparative appre- ciation of two other projects along St. Clair West; Zigg Condos at 223 St. Clair West (an eight-storey 166-unit building), and Imperial Plaza at 111 St. Clair West (23 storeys, 398 units). In 2017, Zigg’s average price a square foot was $767; by 2019 the average reached $999. Down the street at Imperial, prices started higher – $843 a square foot – and finished higher as well at $1,025 in 2019. But the relative rate of appreciation favoured Zigg: 30-per-cent price growth compared with 21 per cent. Asking $1-million for a three-bedroom condominium may be dif- ficult to contemplate for many buyers, but to Mr. Dhanji, it’s all relative. “If you want to buy in Wychwood, a starter home will cost you $1.5-million to $1.6-million – how does a young family afford that? That person who wants to get into the neighbourhood, this is the starter for them.” And as he pitch- es to presale buyers, he argues that mid-rise can increase in value with that family. As Shaun Hildebrand, president of mar- ket research firm Urbanation Inc. points out, anecdotes are not data and a few ex- amples do not make a trend. When Urban- ation compared mid-rise with high-rise re- sale price trends over the past 15 years – for simplicity focusing on the old city of Toron- to boundaries and excluding Etobicoke, Scarborough and North York – some inter- esting findings emerged. First, over that time, mid-rise posted an average annual price growth of 7.7 per cent, which underperformed high-rise price growth, which averaged 8.2 per cent an- nually. But high-rise price growth is un- even, spikey even during times of high speculation. “Taller buildings have reached higher peaks for price appreciation during market run-ups, which may be related to a greater degree of investment activity in these projects,” Mr. Hildebrand said. “Dur- ing periods of steadier price appreciation, such as 2011 [to] 2015, mid-rise buildings generated relatively stronger rates of growth.” That fits with the profile of a mid-rise buyer, according to Dov Seidenfeld, princi- pal at Fieldgate Urban, a subsidiary of To- ronto-based developer Fieldgate Homes, which is preselling the Poet project at 1285 Queen St. E. “People may not want to invest in the beginning, because the end price is higher [than high-rise units], but when you break it down it’s a very minimal pre- mium,” Mr. Seidenfeld said. He argues that mid-rise buyers tend to want to live in their units and not rent them out. Among other things, when a mid-rise project arrives in a mature area such as Leslieville – which is dominated by low-rise housing – it is often the first new supply to the area in decades. “The amount of mid-rise zoned is limit- ed in scope, and makes them a stronger in- vestment case: there are very few units on the market, the end users will have that supply to live with and that’s it,” Mr. Sei- denfeld said. “Also, people retain them – they do not give them up – so the second one comes on the market, it disappears. That creates for the [presale] investor a huge market opportunity.” Urbanation also sees signs that the peri- od of soaring price growth in the high-rise sector may be nearing its end. “Price growth between the two building types be- gan to converge in 2018, and in Q1-2019, buildings under 12 storeys saw average re- sale prices per square foot grow 10 per cent year-over-year, compared to 6.5 per cent for buildings of 12 or more storeys,” Mr. Hilde- brand said. “We may be now entering back into a period of outperformance of mid- rise buildings as the market is shifting.” Toronto’s mid-rise sector is on the uprise Units in shorter buildings might soon outperform their tall rivals in terms of price appreciation, making them a better investment over time SHANE DINGMAN REAL ESTATE REPORTER TORONTO Developer Canderel is planning a mid-rise condominium project, the renderings of which are seen above, at 900 St. Clair West in Toronto. CANDEREL THE LISTING
Transcript of Toronto’smid-risesectorisontheuprise · Rosedale. 2story, 3bedrooms plus den, private patio,...
Janice Fox Broker of Record • 416-924-3779 • [email protected]
36 Astley Ave.$3,495,000
Family friendly in primeRosedale. Steps to Chorley Park.3 stories, 5 bedrooms, 6 baths,
open concept kitchen and familyto opening to a sunny west
facing yard. Built in garage.
100 Harbour St.Penthouse 102$6450 / month
Top of the top breathtaking city& lake views. Corner suite,3
bdrms, 2 decadent bths, wraparound balcony, 1529 sq ft.
55 Scollard St. 803$1,650,000
Large north east corner, withbalcony. Large 1 bedroom, 2
baths, floor to ceiling windows,1 parking. Enjoy full hotel
amenities
415 Glengrove Ave.$3,849,000
Perfect newly built home,5 bdrms, 6 baths, huge
entertaining and family space,loaded with thoughtful luxurious
extras. Sunny south yard,50‘ lot.
55 Scollard St. 801$6950 / month
1 bedroom plus separate den,2 baths, 1260 sq ft in FourSeasons Private Residences.
Enjoy full hotel services. Valetparking included.
55 Scollard St. 201$1,755,000
Ideal city living in the luxuriousFour Seasons. Almost 1200 sqft,1 large bedroom, spaciousopen living & dining room.2 baths, 2 balconies, 10 ft
ceilings.
50 Yorkville Ave. 2803$4,950,000
Four Seasons PrivateResidences, almost 2500 sq fton the sunny south east corner.
2 bdrms + den, customdesigned, 2 parking spots.
55 Scollard St. 605$10,000 / month
2 bedrooms plus separate denoverlooking the south garden,
over 1800 sq ft of luxury. 3baths, long 20 ft balcony.
Available immediately.
50 Yorkville Ave. 5401$12,900,000
The epitome of decadentluxury in the sub penthouse ofFour Seasons. Over 3900 sqft, 2 balconies, 12 ft ceilings,custom designed throughout.
99 Glen Rd.$10,000 / month
Spectacular modern newtownhome in the heart of
Rosedale. 2 story, 3 bedroomsplus den, private patio, garage.
Move in immediately.
55 Scollard St. 2601$2,795,000
Exceptional north west cornerwith stunning sunset views,
almost 1600 sq ft, 2 bdrms,3 baths, 20 ft balcony, openconcept entertaining space.
100 Harbour St.Penthouse 201$6400 / month
Watch the planes glide in overthe lake,1522 sq ft, 2 bdrms, 3baths, + sep. den, powder rm.
10 ft clgs. wrap around balcony.
H12 G THE GLOBE AND MAIL | FRIDAY, MAY 31, 2019| REAL ESTATE
Not all condominiums are createdequal, and in the Toronto area po-tential buyers can expect very dif-ferent amenities, pricing and life-
styles at buildings described as mid-rise(under12storeys)comparedwiththosede-scribed as high-rise (12 storeys and up).Real estate is full of narratives, and one
particularly interesting onehas been tode-scribe mid-rise as “luxury” product, be-cause of its typically higher costs a squarefoot, coupledwithwhat is typically a largersquare footage per unit as well. But if youlisten to salespeople pushing some newmid-rise launches,mid-risemay costmorethan high-rise upfront, but shorter build-ingsmayalsooutperformtheir tall rivals interms of appreciation over time.Riz Dhanji, president of RADMarketing,
leads the sales and marketing effort for amid-rise condoprojectbyCanderel, aMon-treal-based residential andcommercial de-veloper, at 900 St. Clair West in Toronto.Whenlookingtobuildhispitchforthemid-rise, he looked at the comparative appre-ciation of two other projects along St. ClairWest; Zigg Condos at 223 St. Clair West(an eight-storey 166-unit building),and Imperial Plaza at 111 St. Clair West (23storeys, 398 units).In2017,Zigg’saveragepriceasquare foot
was $767; by 2019 the average reached$999. Down the street at Imperial, pricesstarted higher – $843 a square foot – andfinishedhigher aswell at $1,025 in 2019.Butthe relative rate of appreciation favouredZigg: 30-per-cent price growth comparedwith 21 per cent. Asking $1-million for athree-bedroom condominiummay be dif-ficult to contemplate for many buyers, buttoMr.Dhanji, it’s all relative. “If youwant tobuy inWychwood, a starter home will costyou $1.5-million to $1.6-million – howdoesa young family afford that? That personwho wants to get into the neighbourhood,this is thestarter for them.”Andashepitch-es topresalebuyers,hearguesthatmid-risecan increase in value with that family.As Shaun Hildebrand, president ofmar-
ket research firm Urbanation Inc. pointsout, anecdotes are not data and a few ex-amples do notmake a trend.WhenUrban-ation comparedmid-rise with high-rise re-sale price trends over the past 15 years – forsimplicity focusingontheoldcityofToron-to boundaries and excluding Etobicoke,Scarborough and North York – some inter-esting findings emerged.First, over that time, mid-rise posted an
averageannualpricegrowthof7.7percent,which underperformed high-rise pricegrowth, which averaged 8.2 per cent an-nually. But high-rise price growth is un-even, spikey even during times of highspeculation. “Tallerbuildingshavereached
higher peaks for price appreciation duringmarket run-ups, whichmay be related to agreater degree of investment activity inthese projects,” Mr. Hildebrand said. “Dur-ing periods of steadier price appreciation,such as 2011 [to] 2015, mid-rise buildingsgenerated relatively stronger rates ofgrowth.”That fits with the profile of a mid-rise
buyer, according to Dov Seidenfeld, princi-pal at Fieldgate Urban, a subsidiary of To-ronto-based developer Fieldgate Homes,which is preselling the Poet project at 1285QueenSt. E. “Peoplemaynotwant to investin the beginning, because the end price ishigher [than high-rise units], but whenyou break it down it’s a very minimal pre-mium,”Mr. Seidenfeld said. He argues thatmid-rise buyers tend towant to live in theirunits and not rent them out. Among otherthings, when amid-rise project arrives in amature area such as Leslieville – which isdominated by low-rise housing – it is oftenthe first new supply to the area in decades.“The amount of mid-rise zoned is limit-
ed in scope, andmakes thema stronger in-vestment case: there are very few units onthe market, the end users will have thatsupply to live with and that’s it,” Mr. Sei-denfeld said. “Also, people retain them –they do not give them up – so the secondone comes on the market, it disappears.That creates for the [presale] investor ahugemarket opportunity.”Urbanation also sees signs that the peri-
od of soaring price growth in the high-risesector may be nearing its end. “Pricegrowthbetween the twobuilding types be-gan to converge in 2018, and in Q1-2019,buildings under 12 storeys saw average re-sale prices per square foot grow 10 per centyear-over-year, comparedto6.5percent forbuildings of 12 or more storeys,” Mr. Hilde-brand said. “Wemay be now entering backinto a period of outperformance of mid-rise buildings as themarket is shifting.”
Toronto’s mid-rise sector is on the upriseUnits in shorter buildingsmight soon outperform theirtall rivals in terms of priceappreciation, making thema better investment over time
SHANE DINGMANREAL ESTATE REPORTERTORONTO
Developer Canderel is planning a mid-rise condominium project, the renderings of which areseen above, at 900 St. Clair West in Toronto. CANDEREL
THE LISTING
