Jane and Finch, Rexdale, Malvern Have Toronto’s Highest Condo Appreciation Rates, Outpacing Downtown Core by Nearly 20% [REPORT]

Condos in Toronto’s traditionally-overlooked neighbourhoods have the highest appreciation rates in the city. Jane and Finch, Rexdale and Malvern are even outpacing the downtown core by as much 20%. Not only are investors maximizing their ROI in these neighbourhoods, but the majority of Toronto’s best-performing condominiums are also concentrated here.

The city’s average condo appreciation rate is 2% year-over-year. But properties in Malvern in Scarborough’s northeast corner, for example, have seen a value increase of 14% during the past 12 months. Jane and Finch, meanwhile, has an appreciation rate of 11%. Even Rexdale, which saw condo values plunge in mid-October, has made a surging comeback. Its appreciation rate has increased by 5.15% in the past 60 days alone. Compare that to condos in the downtown core, which have been reporting an overall depreciation this past year of -6%.

Immigrant populations may be driving appreciation rates

Robert Van Rhijn is the Broker of Record at Strata.ca. He says many immigrant populations may not have the means to purchase in the heart of the city, forcing them to look elsewhere. And that could be what’s pushing up appreciation rates in North York, Etobicoke and Scarborough.

“Because prices downtown are typically higher, people usually look to outlying neighbourhoods for better value. This creates more demand than there is supply, resulting in value increases as buyers compete and outbid one another. Our data shows that sellers in Jane and Finch, Rexdale and Malvern have been the beneficiaries of this trend over the past year,” adds Van Rhijn.

Malvern has largest concentration of condos with biggest ROI

Strata looked at the average cost-per-square-foot for every building in the city. We then compared those figures against both the neighbourhood and city average, giving us a percentage value. By doing this, we were able to pinpoint the properties that have provided the best return on investment (ROI) during the past 12 months.

Our data shows that the majority of Toronto’s highest-performing condominiums are concentrated in Jane and Finch, Rexdale and Malvern for a total of 24 properties.

For each neighbourhood, here are the top 3 condos that have appreciated most in value this past year:

Malvern

480 McLevin Avenue: +22%

10 Tapscott Road: +19%

1701, 1703, 1705 McCowan: +18%

Jane and Finch

10 Eddystone Avenue: +25%

10 Tobermory Drive: +24%

5 Frith Road: +19%

Rexdale

6 Humberline Drive: +23%

700 Humberwood Boulevard: +14%

710 Humberwood Boulevard: +10%

Van Rhijn believes that we’ll continue to see a lot of upswing in these traditionally-overlooked neighbourhoods. And as appreciation rates increase, he expects some level of gentrification to occur in the years ahead.

“As prices rise, we’ll undoubtedly see the typical signs of gentrification occur. That means more boutique shops, restaurants and other amenities popping up in these areas. This will result in even more demand among a more diverse demographic of buyers. Both families and investors would be smart to start exploring these neighbourhoods, given they may look quite different 10 years down the road.”

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