Real Estate Guides

Where to buy a condo in Greater Toronto in 2018

To make a smart property decision you need to buy in a neighbourhood that’s desirable yet still has room to grow. Our ranking of the best neighbourhoods will help you narrow down that search

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First-time buyers and downsizers compete with investors for condos in Greater Toronto

When news reports consistently highlight the sharp decline in Toronto’s property market, it’s easy to forget that the real estate market isn’t one monolithic beast. Rather each city is host to a number of different real estate markets all dominated by specific property types.

Now, more than ever, these distinctions are important. Condo and townhouse buyers shouldn’t be guided by market trends that only apply to single-family detached homes, plus condos for sale in the Greater Toronto Area have the added impact of investor activity. In the latest financial review from the Bank of Canada, there was overt concern regarding potential speculative activity by real estate investors in Toronto’s condo market. Turns out the city’s multi-family market is chalk-full of investors. According to Benjamin Tal, CIBC deputy chief economist, almost half (48%) of all new-condo sales were made by domestic investors (not foreign investors).

Tal suggests that much of this investment activity is due to a desire by current property owners to replicate past successes. Those that bought condos five years ago saw a 40% to 50% increase in the property’s value, explains Tal in the April 2018 edition of CIBC’s In Focus Economics report. These big gains are prompting some investors to take on debts they may not be able to cover. Tal’s analysis shows that anyone who bought a condo for investment purposes in 2017 is probably experiencing a negative month-to-month cash-flow since rental income isn’t covering mortgage and maintenance fee payments. These losses will prompt an immediate response — property investors will simply stop buying — as well as a longer-term response which will be a sell-off of investment condos over the next few years. While some will sell, Tal’s analysis shows that most will wait for property appreciation to catch-up and this will translate into a softening of the Toronto condo market over the next few years.

What does all this mean for those ready to buy now? It means you need to keep your eye on the fundamentals.

To make a smart property decision you need to buy in a neighbourhood that’s both desirable and still has room for the property values to grow. Our ranking of the best neighbourhoods to buy a condo in the Greater Toronto Area should help you narrow down those communities. Of course, this list is just a start. Every buyer still needs to do their own research. Talk to a real estate professional, walk the neighbourhoods and talk to locals. The best thing you can do is plenty of research. The good news is our lists can help you short-list the best communities to find a Toronto condo for sale.

Top 10 Best Neighbourhoods to Buy a Condo in Greater Toronto in 2018zol

  1. Queen Street Corridor, Brampton, Peel – $335,683
  2. Malton, Mississauga, Peel – $361,855
  3. Crescent Town, E03, Toronto – $248,110
  4. West Hill, E10, Toronto – $285,047
  5. Ionview, E04, Toronto – $203,056
  6. City Centre, Mississauga, Peel – $398,412
  7. Waterfront Communities, C08, Toronto – $683,352
  8. Forest Hill North, C04, Toronto – $378,875
  9. Kennedy Park, E04, Toronto – $300,853
  10. Dorset Park, E04, Toronto – $390,247sou

Top 10 Worst Neighbourhoods to Buy a Condo in Greater Toronto in 2018

  1. Stouffville, Whitchurch-Stouffville, York – $319,575
  2. Bronte Meadows, Milton, Halton – $439,593
  3. Stonehaven-Wyndham, Newmarket, York – $549,700
  4. Rose, Burlington, Halton – $704,233
  5. Bolton West, Caledon, Peel – $610,286
  6. Bayview, Burlington, Halton – $307,300
  7. Lisgar, Mississauga, Peel – $518,994
  8. Lorne Park, Mississauga, Peel – $572,083
  9. Shoreacres, Burlington, Halton – $223,950
  10. Tynanda, Burlington, Halton – $399,688

Additional reports

Romana King
Romana King

Romana is an award-winning personal finance writer with an expertise in real estate. She is obsessed with the property marketplace and is the current Director of Content at Zolo.