Toronto Pre-Construction Condos
Get Early Access And Exclusive Discounts For Pre-construction Condos In The Greater Toronto Area
Latest Condo Developments
Toronto Condo Prices
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.
|Average prices for condos in 2020 (pre-construction & older units)|
|Municipality||Average Price ($)||Municipality||Average Price ($)|
Greater Toronto Area
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 in Toronto
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.
|Unemployment rates for GTA municipalities in 2020|
|Municipality||Unemployment rate||Municipality||Unemployment rate|
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 Preconstruction
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.
Stage 1 – Friends and Family Sales Event (5 – 10% of units are sold)
The first stage of pre-construction sales is usually exclusive to friends and family members. The developer invites their close ones to buy the first units, usually the best ones at huge discounts.
Stage 2 – Platinum VIP Agents Get Access (30 – 40% of units are sold)
The second stage of pre-construction sales is usually reserved for platinum agents. Platinum agents, like Condo Shopper, earn their status by selling a large number of units or by building long-lasting business relationships with developers.
The platinum launch is typically the best time for investors to purchase because it offers large discounts, exclusive unit choices, rebates, incentives, and so on.
Stage 3 – VIP Agents Get Access (20 – 30% of units are sold)
At this stage of the sales process, the prices are increased and the perks and incentives are reduced or removed, depending on the number of condos still available.
Stage 4 – All Agents Get Access (10 – 20% of units are sold)
During this stage, the prices can go even higher. The best suites are most likely already sold out, and there are no perks or incentives offered.
Stage 5 – Pre-registrants Get Access (5 – 10% of units are sold)
Members of the general public who have registered on the developer’s website are invited to buy condos. But it’s important to know that developers sometimes hold these units for up to a year or more before giving access to pre-registrants, especially if the condos are in sought-after locations and there is a lot of demand. This tactic allows developers to increase the prices and sell these units at maximum market value.
So, while pre-registering to a developer’s website might seem like a better deal than paying realtor fees, contacting a Premium VIP Agent like Condo Shopper can actually save you money with exclusive discounts and incentives, and enable you to secure pre-construction condos sooner.
Stage 6 – Grand Opening (last 10 – 20% of units are sold)
The developer advertises the grand opening in the media and invites everyone to buy the remaining units. Unfortunately, the best condos are sold out by this stage and the buyer can only choose from the units all the previous potential buyers didn’t want, and pay more for them.