GTA Pre-Construction Has Lost Its Marbles
GTA Pre-Construction Has Lost Its Marbles
November 15, 2019
United Building Condos Render
United BLDG Condos
December 16, 2019

At this stage it may not come as a surprise to my readers that I am a big advocate of Downtown East. The reason why is not just because I live in the East but also because I have sold hundreds of condos here and have witnessed people build generational wealth. Today I will provide the savvy investors with five solid reasons as to why investing in the East End is still the best decision a pre-construction (or resale) buyer can make.

  1. Downtown East is cheaper than the Core

When we are considering any investment the first metric that comes to mind that is of top priority is the selling price. Downtown East pre-construction launch pricing is consistently more affordable than the rest of the core. According to Urbanation the Average New Condominium Unsold Price in Q3 of 2019 in Downtown East was $1269 PSF. In contrast, Downtown West was $1404 PSF.

Let’s look at the East-end new launches of 2019 and the project PPSF Average:

  1. River and Fifth – $1,100 PSF
  2. Poet – $1,100 PSF
  3. Logan – $1,000 PSF
  4. Lakeside – $1,200 PSF
  5. Linx – $1,000 PSF
  6. Saint – $1,250 PSF
  7. 31 Parliament: $1,250 PSF

We are looking at an average 2019 pre-con selling price of $1,130 PSF. There simply haven’t been any new launches West of Yonge St offering the same proximity to TTC Line 1 or the Financial District at a remotely comparable price.

Resale is a similar story. At the time of writing this post the current Downtown Toronto Condo Resale Average PPSF is $988. East end neighbourhoods such as – Church Street Corridor ($916), Distillery District ($958), Moss Park ($897), Regent Park ($914), Cabbagetown ($720) and St. Jamestown ($882) are all below the downtown average.

Because East End projects are selling at less than downtown pre-con and resale average, they have a higher appreciation potential.

  1. TTC is Building a Downtown Relief Line

Do not get confused, the next big undertaking for the TTC, is not the York Region Subway extension, it is the Downtown Relief Line. TTC is making the Relief line a priority prior to commencing work on any other project because of the congestion that is plaguing TTC Line 1. This 7-Billion-dollar investment in transit is projected to complete as early as 2027. The South portion of the extension will consist of 8 stops and run from Osgoode Station along Queen East and loop up to Pape.

One can only imagine the impact a project of this magnitude will have on the prices of East-End real estate.  

  1. Google Sidewalk Labs

Sidewalk Lab’s master plan to build a tech city within a city is a 1.3 billion dollar undertaking set to transform the entirety of East Bayfront. It is projected to create 44,000 full-time high-paying jobs. One Million square meters of employment space, 300 hectares of parks and public spaces with room for 40,000 residents.

You can read more about this tremendous undertaking here:

  1. East-Harbor Redevelopment

East Harbor redevelopment is a project by Cadillac Fairview valued at 8 Billion. This is a master-planned 60-acre mixed use development encompassing 12 million square feet of office space, institution and a retail neighbourhood called east Harbor, including a second Union Station with Subway Relief line, Queens Quay Streetcar, GO train Smart-track and Buses. It is expected to bring in excess of 50,000 jobs to Downtown East.

You can read more about the East-Harbor Redevelopment here:

  1. Regent Park Revitalization

Since its commencement in 2006, 69-acre Regent Park revitalization has been the largest revitalization of a city core in North America. Today, 13 years later, Daniels Corporation in partnership with Toronto Community Housing have transformed the neighbourhood entirely. A new identity has been created for Regent Park, that of community and togetherness. A multitude of amenities are enjoyed by Regent Park residents such as the MLSE Athletic grounds including an elite outdoor turf field, basketball courts, hockey rink, Pam McConnell aquatic centre a 10-acre park and more.

Regent Park is one of the fastest appreciating neighbourhoods in Downtown Toronto with 2019 appreciation of 11.6%, doubling the Downtown average of 5.7%!!! Regent Park is now a destination for many and it’s only 2/3rds of the way completed.