CAN TORONTO CONDO MARKET SUPPORT NEW YORK PRICES

A recent report by Prudential Douglas Elliman looked at Manhattan studio (bachelor) prices from 2002-2011. It found that in the Upper East Side, the average size was 478 square feet and the average price was $739 per square foot. The average price works out to be $353,000.

Now compare that to our downtown Toronto condo market. The average studio here is 400 -500 sf. ( A note of caution, lenders hate to finance anything less than 400 square feet, so stay away from these units). In the resale market the price is about $600 per square foot. In the new pre-construction market, you can expect to pay $700-800.

Now I am not against having Toronto prices at or higher than New York’s. But just think for a minute, salaries in New York are considerably higher than in Toronto. As for rents, studios here are moving up to $1400 per month (they used to be $1200) whereas in New York it is $1700-$2000. Do the math! Our prices cannot go any higher unless rents move up and that means salaries must be higher too. When will that happen? As a potential property owner, do you want to bet on that?

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3 Responses to CAN TORONTO CONDO MARKET SUPPORT NEW YORK PRICES

  1. This is really a great article with regards to the Toronto apartments in the city quite in vicinity to the heart of the city..

  2. Lina says:

    The articles make good points. There are a lot of uncertainties in Toronto condo market. There will be definitely some adjustments.

  3. Sunny Batra says:

    I would highly disagree with this article.

    1) I would not compare Upper East Side with downtown core. Upper East Side of NY could be compared with Downtown West or Downtown East of Toronto where you can get something in pre-construction for around $450/Sq. Ft.

    2) Fair comparison would be comparing 2012 price per square foot of pre-construction condos in Manhattan to pre-construction condos in Downtown Toronto. When I say Downtown Toronto I am referring to Downtown Core.

    Average price of New Developments in NYC decreased by 3.2% to $1,349 per sq. ft in Q4 of 2012. In Q3 of 2012 they were at $1,422 per sq. ft. Source: http://manhattanmiami.com/resources/manhattan-mar

    Even if we were to talk about the report by Elliman the average price per square foot of condos in re-sale in Q3 of 2012 were $1,293/Sq.Ft. Source: http://www.elliman.com/pdf/c56477d9940a69ea611053

    Let's talk about Toronto! You can buy something in downtown core in pre-construction for about $650-$675 per square foot at the stage of Platinum/VIP agent launch. At the general public opening stage it will be $700+ per square foot mark.

    Affordability is one of the reasons why Investors from all over the globe have been investing in Toronto.

    Posted on April 4, 2013

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