Toronto’s condo market has been on an upwards trend for many years now. When we first got into the business over 15 years ago, the average, you could get an excellent quality condo in a great neighbourhood for $250/square foot. Toronto now sees more than $1000/square foot for an average condo.
Most of the more popular condos sell for over $1250/square foot. In contrast, the most luxurious condo developments in the most expensive parts of Toronto can see well over $2500/square foot.
It may come as a surprise to many condo buyers that there are some undervalued condos in Toronto. We aren’t talking cheap, poor quality, less desirable neighbourhoods here.
We are talking about undervalued condos that we like. We like these condos a lot. We believe that these condos are an excellent investment in both the short and long term.
We expect these condo buildings to have a higher return than their neighbours. It’s also worth noting that we have several clients who lived in these buildings over the years.
510 King Street East – Corktown District II
510 King Street was for many years alone on King Street East. There were very few developments in place. Nowadays, the Canary District in Corktown has boomed. In that time, Impact Kitchen arrived, Lift CrossFit gym and other great shops. Why do we like 510 King Street East so much? The quality of construction is good. You cannot hear your neighbours cooking, walking or playing music (this is rare in many newer condo buildings.) The layouts are great, these are spacious, and even the micro-units are an excellent layout and design where there is no wasted space. The ceiling heights are also very high, which gives more of a spacious feel. Lastly, the cost per square foot is reasonable considering how well built the condo building is. The 192 units over eight storeys make for a boutique building, not a monster tower that you would see long the Bay Street corridor. The rooftop patio and party room are fantastic!
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318 King Street East – The King East
The King East is a great building within a short walk of the financial core. Brad Lamb Development did a good job with this project. The units are very well designed. Why does design layout matter? It’s as simple a good layout is more important than square footage. Have a large unit with two giant concrete pillars in the middle of the space and a sharp triangular corner, and you quickly realize how hard it is to live in that space, to place furniture in a usable way. The living space is excellent here. Also, being that the building has 215 condo units and 15 storeys. These condos typically trade at a 10% discount to other downtown condos.
➤ Every good investment needs a well-planned strategy. Start preparing with:
- Are Condos A Good Investment?
- Condo vs House Investment
- 5 Tips for Selling Your Condo in Toronto
- Millennial Home Buying Trends
25 Broadway and 70 Roehampton – The Republic Towers
The Republic North and South towers are a great project Tridel completed in 2011. For those who grew up in the Yonge and Eglinton and Lawrence Park neighbourhoods, you know this land by a different name, North Toronto Collegiate (NT.) NT needed a complete overhaul of the school – what ended up happening was the first of its kind in Toronto. Tridel cooperated with the TDSB and city to rebuild the school and bracket the grounds with two condo buildings. Tridel is renowned for making quality condos buildings that last the test of time. These buildings typically trade at a 12-15% discount to similar quality downtown condos.
25 Oxley – Glas Loft
Sometimes a building gets overlooked because it isn’t on a major street, and it’s overlooked by a more prominent name, Charlotte Street. 25 Oxley is an excellent building with few bells and whistles for amenities. It also trades less than The Hudson just around the corner (also a worthy mention in the list of undervalued condos in Toronto.) Lamb Development Corp did another stylish, modern condo development. The team gets style and value. Some people like how tucked away Oxley is, just off of Spadina. It has a New York City feeling as an entrance. The building trades at a 5% discount to new buildings in the. It’s worth noting that the Hudson sells at a similar cost per square foot. Either would be a good option today and into the future.
See Our Full Toronto Condo Guide
The Most Undervalued Condo In Downtown Toronto
155 Dalhousie – The Merchandise Lofts
Arguably the best value in downtown Toronto. The Merchandise Lofts are fantastic. Some layouts are a little bit odd but great for investors looking to rent out. The vast majority of units are outstanding, with large, high ceilings and lots of windows. Great spaces, high ceilings, very quiet between units. So why are the Merchandise Lofts so overlooked? Likely because of the location, near the Eaton Centre, it doesn’t have the same draw as King Street West. The only option for restaurants is the tourist-centric Yonge and Dundas Square. But don’t let that deter you. It’s rare to find a hard loft development that is less per square foot than a generic condo. This is a great bet. The units trade at a 20% discount to downtown condos in some cases.
