Avoid Toronto—it’s rare to find a condo in the GTA’s that’s putting up for sale for under $1, 000 for sq ft, but a project in Scarborough is doing except that, making it one of the few affordable house developments in the region.
East Semence Condominiums, an 11-storey, 114 unit mid-rise, slated to receive development in the Kingston Rd. and Morningside Ave. locations, is selling for around mid-$800 psf, and there’s hardly any rental competition in the area whereas being nestled next to one particular University of Toronto’s Scarborough Campus.
“We’re about the cheaper km away from UofT worries Scarborough, and Centennial Fe college is nearby too, ” said Mike Bowering, lead designer of Mutual Developments , East Pointe’s builder. “The university there is drastically undersupplied with housing. UofT has 15,000 students and only 850 beds, and it’s slated to increase enrolment up to 30,000 in the next 10 or 15 years.”
It’s true that the COVID-19 pandemic chased international students out of the country and domestic students back to their parents, but that is very likely to change by summertime. In 2019, according to the federal government, there were 828,356 international students in Canada, the majority of whom studied in Ontario. For most in the province, Toronto was their choice city.
“Our universities are suffering because foreign students are major contributors to them, because they pay more than domestic students. Domestic students are also missing because a lot of them are taking classes online,” Phil Soper, president and CEO of Royal LePage, previously told FOLKS . “The us government paved the way for students to return to Canada, and a lot of them came back into January, but most won’t return until September when the training year starts. ”
In this way, residential property investors will have some opportunity to fulfil student preference, although with most units in the region don’t carry competently. But Bowering says Far east Pointe might allay a few of their concerns.
“For investors, hallelujah the same old story: buy lessened and sell high. At $1, 500 psf, you get as much rent as you can, and there aren’t many condos that carry if you are charged over $1, 000 psf, ” he said. “Our prices are mostly between $400, 000-600, 000, and 10% of our units will have about three bedrooms, which are considered your home and family sized. ”
Investors regain the most when they jump in soon because they can ride a top wave of appreciation, predominantly in up-and-coming, and therefore appealing, neighbourhoods. The Kingston passage underwent some revitalization about a decade ago, which as well as saw maximum property altitudes rezoned to eight storeys, but there hasn’t previously been much residential development surroundings. Mutual Developments is looking to allow them to capitalize on the gap available in the market.
“There are several advantages to that area, with the GO Train right there, out of doors and a lot of other amenities, ” said Bowering. “Scarborough are less expensive compared to the rest of the capital. If a condo in in the downtown area Toronto costs well right above $1, 200 psf, you might land one in Scarborough at eight hundred fifty dollars and get about $2, thousand a month in rent. ”