Guys, don't get too caught up with price per square foot calculations. I see too many people making this mistake. The trend in Toronto is going in the direction of smaller units (meaning higher price/sq ft). However, the absolute dollar value is more important. For example, a 2Br, 2Bath 700sq ft unit priced at $400,000 ($571 per square foot) is of much greater value than a 1Br+D, 1Bath 800 sq.ft priced at $400,000 ($500 per square ft). The 1Br+D is a classic case of "excess land" (or square footage) whose utility cannot be recovered as it will not sell at the price per square foot value ($571) of the 2 bedroom 2 bath unit.
I see many people complaining about the size of pre-constuction units (2bedrooms at 650 square feet etc), but from an investment perspective, they make much more sense than a one plus den at the same size. I can for example rent this unit for 1800/mth (which is cheap for a 2bedroom in downtown toronto) and thus would be no problem renting. A one Br+D at the same price would have more difficulty renting. The two bedroom would have better appreciation potential also.
