Two condo buildings in Toronto’s west side neighbourhood of Little Portugal have been selling units for well under market rate. However, what might be a boon for some, is decreasing the entire neighbourhood’s property values.
In Toronto, the average selling price of a condo is around $717,000 CAD, but these two buildings, 36 Lisgar Street and 68 Abell Street sell units below the average at approximately $582,000. MLS sats shows that 33 homes were sold last month in the area, and 13 were well under market rate.
A real estate agent named Sam Massoudi told Strata that it’s peculiar to see one-bedroom condos selling in the low $400,000s when the average in Toronto is closer to $560,000.
Massoudi does clarify that the units in these buildings are a little more barebones and smaller than what Toronto buyers are looking for.
This may seem like a dream price for anyone looking to buy, but for other Little Portuga residents, it’s a nightmare since it has the potential to drive down their real estate vales by as much as 20 percent, according to the blog.
When you omit these two buildings from the Toronto neighbourhood’s property value metrics, the property values soar to an average of $753,000 claims Massoudi. This is above the Toronto average of $701,000.