The real estate market is always changing and evolving, so the price of a condo varies from one construction (project) to another. The price of a condominium is determined by its location, age, appearance, and building materials used.
Condos built in high demand areas or in new suburbs are more likely to retain their value over the years, so they’re more expensive than others. Existing or planned area amenities, such as public transit, shopping spots, restaurants, parking zones, and recreational facilities also drive a condo’s price up.
Older condos tend to require costly upgrades, so they can lose some of their value over time. If the building’s common areas are not attractive and well maintained, the unit loses its future marketability and potential resale value.
The building materials used ultimately affect the condo’s comfort. Wood-frame condos are usually noisier than concrete buildings, so buildings with wooden frames tend to lose some of their value over time.
Pre-construction condos make such a great investment because they tick off all the important elements that affect a unit’s price. They are usually located in new suburbs or up and coming areas. They’re brand new, so they do not require any upgrades. Their common areas are modern and attractive, and they’re usually built using the latest materials, so they tend to be very comfortable.
All of these factors make pre-construction condos a great investment. And if you take into account the fact that you can save a lot of money by investing in a pre-construction condo, the investment becomes even better.
The Greater Toronto Area (GTA) is the most populated area in Canada. The metropolitan area includes the city of Toronto and the municipalities of York, Peel, Durham, and Halton. The GTA contains 25 municipalities.
Employment and the population’s income often have unique impacts on condo prices. Easy access to lucrative employment opportunities is one of the most valuable amenities a condo can offer. In urban economics, this means that employment can be one of the key determining factors of housing prices and values.
High unemployment is usually correlated with a lower expected future income, which translates to a lower demand for housing. When there’s a lack of demand for housing, many sellers pull their units off the market, bringing the average price of the units in the area down.
Public transportation plays a fundamental role in the social and economic growth of urban areas, and it can significantly affect the quality of life in such areas. Accessibility to public transportation influences the population’s mobility, which, in turn, influences everyday life, social inclusion, and the income potential of local companies and commercial operators.
The quality of public transportation affects the price of condos directly: the higher the quantity and quality of public transport systems, the higher the accessibility of the area, and the higher the average of condo prices.
There are 12 integrated public transit systems and a regional commuter transit system operating in the GTA. The Toronto Transit Commission is the busiest transit system in North America after New York City, with more than 442 million passengers per year.
Additional public transport systems serving the area are:
Investing in Toronto pre-construction condos is a sensible decision because it offers one of the highest returns on income you can get from real estate acquisition. Pre-construction real estate usually has lower initial prices, and the earlier you get in, the higher your returns.
Pre-construction properties are usually sold in different stages. Each stage generally comes with its own prices and incentives.