A new report by Strata.ca reveals that condo prices in the downtown Toronto core are continuing to increase, but not in the likely areas.
Usually there are spikes in cost in the trendier area, however, this time around its the prices in teh financial district that are leading the way. The Bay Street Corridor saw the PSF for units reach $1,200 PSF, with an average condo price of approximately $893,000 in August.
“A lot of young professionals are heading back to the office a few days per week, so it’s understandable that demand is up,” said Francisco Hiebert, a real estate agent at Strata.ca. “There are lots of students from wealthy families who opt to buy instead of rent. So that’s also contributing to some of the bidding wars in this area.”
The party locations, such as King West, Queen West, The Village and Distillery District, saw a decrease in average condo prices in July.
“Party neighbourhoods like King and Queen West are still sitting at March levels with The Village at its lowest since January,” said Van Rhijn broker of Record at Strata.ca. “When we looked at all the data on a map, the neighbourhoods with an uptick in sales activity had a higher concentration of workspaces. The writing’s on the wall as people face the reality that they’ll eventually have to return to the office.”
Hiebert stated that rental demand is still high in entertainment areas, but the major question is will be people returning downtown to work, but not to play?