There’s something truly special about living along the water. What’s better than brushing your teeth on the balcony, looking down on the calming waves below? Or enjoying sunset dinners with gorgeous views of the lake?
Many homebuyers will say that a view of the lake is something worth paying extra for. But the question is: Just how much more should people expect to spend? That’s why we set out to determine the exact value of a Toronto waterfront view.
In order to arrive at this precise value, we compared sales prices for 20 pairs of units during the past 12 months. Each pair consisted of nearly identical units, except for their orientation: One unit from each pair faced north; the other faced south. The units in question were located in 13 buildings along Toronto’s waterfront (predominantly concentrated along Queens Quay and Lakeshore Blvd), and stretching to the Etobicoke border. So when we say waterfront view, we really mean waterfront view.
After determining the average sale price for each pair, we calculated the difference among those averages, represented as a percentage.
Here’s what 8% looks like against various property values:
Now that you know just how much a Toronto waterfront view will set you back, does it make sense to pay the extra 8% for a coveted view of the lake? The answer is very subjective because the added cost is worth it for some, yet unreasonable for others.
Robert Van Rhijn, Broker of Record at Strata.ca, believes both points of view are completely valid. He says it really depends on what you value in a property, considering you’ll get your money back when it’s time to sell.
“If a view of the water is going to improve your overall quality of life, then why not? I’ve worked with a lot of buyers who are determined to get that lake view because it keeps them emotionally anchored. It gives them a sense of calm, which is a nice contrast to the chaos that often comes with city life.”
Van Rhijn also adds that there’s only so many waterfront properties to go around. So it’s important to capitalize on that fact:
“There’s this overwhelming sense of scarcity. Any developer can erect a condo, for example, on any parking lot in the city. But there’s a finite amount of locations that lend themselves well to a waterfront view.”
Ultimately, the question of whether that additional 8% is fair is up to the individual buyer. Whether you want to increase your ROI or just can’t shake the idea of morning coffees overlooking the lake, one thing’s for sure: Owning a waterfront property in Toronto is never a bad idea.
For journalists: If you’d like more information on this report or would like to receive future news releases, please send your requests to media(at)strata.ca.