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Baby, we got a bubble!?

cruzin4u said:
About 3 years ago, rent for a 1 bedroom + den and 1 bath at X was going for $1750 per month. Once I moved out, after 2 years that same unit was on the market for $2000 a month. So definitely the pricing has gone up in the last few years.
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I can't comment about X condos specifically but from Jamie Johnson at Remaxcondosplus: His report on rentals presently:

RENTAL COMMENTARY:

In the First Quarter of the year (2014), there were just over 2,000 condos rented downtown. This was 18% higher than the rental number last year. Not only is the rental market growing faster than the sales market, it was also double the size of the condo sales market for the same period. There is no doubt that more and more people want to live downtown. The question is: do people rent or buy? If you ask people who own, they will always tell you it is better to buy. But the Government seems determined to turn young people into the Rental Generation. Just my take.

In terms of rental rates, the extra supply and the seasonality of the rental market certainly played a role in the softening of prices. Monthly studio rentals declined by $25 to about $1375 on average. The one bedroom market also declined from $25 to $50 per month. The entry level one bedroom without parking is $1575. The high end of this market – a den and parking is at $1875. The two bedroom market without parking backed off to an average of $2050. The high end of the two bedroom market with parking and a den also declined to just under $2800 per month. Three bedroom units, in short supply, average almost $4,000 per month. The take away from the rental market is that the days-on-market to rent which used to be in the 10-20 day range across all units is now up to 20-30 days.
 
Condo George said:
The Britt on the corner of Bay and Wellesley was giving investor for a one bedroom a 2 yr rental guarantee of $1900 a month, not saying that is going to happen at Wellesley but I think $1650 is very low for new product in this area.

Another point is look at resales at Burano these small one beds are in the $800 psf range today. So I am in at $660 a ft. But that's me, I am sitting on cash at 1% waiting for this tower to launch.
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At 832 Bay Street:

Asking $438,000 for 613 sq ft. That $714.51 psf asking price.

George, why distort the facts? You only erode your credibility further.
 
CN, small one beds are 445 sq ft Burano on the low floors $355,000 to high floors $390,000

613 sq ft is not a small one bed, in some cases its a big one and den.

My creditbility is the key to my success thank you.
 
Actually they show a 1 bedroom/den at 608 sq.ft. on high floor 33 at 498K ask which is $819/sq.ft. I don't know if there is a locker/parking spot.
Usually however Bay street seems to command more than Yonge street, and also is Bay and College a better or worse location than Yonge and Wellesley in people's view, assuming both are similar product.

One further question: These are asking prices...what are the actual solds in Burano?
 
Just wanted to say thank you to UT members who I have spoke to in regards to 11 Wellesley condos, I appreciate your trust and confidence. I hope we all do well. Sincerely.
 
770 bay st lumiere building, unit at 895 sqft 2 +den, with locker. just sold for 641,000 . $716 sqft
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The prices in the bay/college area are very high. Why? I have no idea. But they are. I was looking at sold units in Murano (500sqft) 1 bedroom no parking. I saw units selling for over 350K.

Murano sales from this year:
37 Grosvenor St 2306 - Sold:$370,000 / Sold Date:1/24/2014
38 Grenville St 3006 - Sold:$420,000 / Sold Date:2/21/2014

Yes. That's a 500 sqft unit.
 
TheKingEast said:
The prices in the bay/college area are very high. Why? I have no idea. But they are. I was looking at sold units in Murano (500sqft) 1 bedroom no parking. I saw units selling for over 350K.

Murano sales from this year:
37 Grosvenor St 2306 - Sold:$370,000 / Sold Date:1/24/2014
38 Grenville St 3006 - Sold:$420,000 / Sold Date:2/21/2014

Yes. That's a 500 sqft unit.
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With or without parking?
If no parking, that is high. These are high floors and small units generally command more/sq.ft. than larger ones.
Still $740 and $840/sq.ft.
Again, Bay street I believe commands a premium....not exactly sure why.
 
KA1 said:
If parking is not included in this price, then, psf will be even higher.
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True, but the new condos don't include the parking price. So quoting $675/sq.ft. and a parking at $50K on 500 sq.ft. means $775 whereas parking in most other built buildings unless acutely in short supply is lower priced than this.
 
For the question on why condos around Bay/College command a premium over most areas of downtown, I'm wondering if it's: 1) Simply because it's Bay Street - there is a certain association with that name; 2) The fact that it's the middle of three main north-south downtown streets (Yonge, Bay, Uni. Ave) and have access to two subway lines within a 5 minute walk; 3) You are in the geographical centre of the downtown core (i.e. Bloor-Yorkville, Church, Front East/St. Lawrence Area, Entertainment District, UofT, Ryerson, Eaton Centre, the Financial District, ACC and Rogers Centre, the main hospitals on University Ave, etc. are all about a 20 minute walk from here max; 4) The higher prices/sq. ft. are in the newer condos and there's only so much more that can be built on Bay Street - a symbolic street that is made even more exclusive by the fact that it runs only in the downtown core (i.e. Lakeshore to Davenport); and finally 5) Outside of Bloor-Yorkville and certain small pockets/buildings outside of downtown, where else can high rise condos command a premium greater than Bay Street? I can see other areas getting closer to and perhaps matching Bay Street's prices (like certain buildings off of Yonge in the future or in King West) but perhaps not exceed Bay Street's rates (Bloor-Yorkville and the few 5-star luxury towers excepted).
 
interested said:
With or without parking?
If no parking, that is high. These are high floors and small units generally command more/sq.ft. than larger ones.
Still $740 and $840/sq.ft.
Again, Bay street I believe commands a premium....not exactly sure why.
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No parking. Bachelors are well over $300k.

Fees at murano are pretty low though. In the 200s
 
interested said:
True, but the new condos don't include the parking price. So quoting $675/sq.ft. and a parking at $50K on 500 sq.ft. means $775 whereas parking in most other built buildings unless acutely in short supply is lower priced than this.
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At one time, I used to estimate fmv of my unit based upon the psf a condo in the neighbourhood was sold for. Now, I guess, I will have to do a different set of calculations.

If a unit in Lumiere was sold for $ 716 psf without parking, then, my unit with parking, just across the street will be worth more. Is that so?

This reminds me of buying a car in the early 60s ( shhh.. I just gave you the idea of my age). Standard transmission came with the car. Automatic was extra, so was power steering, radio, radio with a cassette etc.

It seems that developers have, cleverly, reduced psf of a unit and trying to convince the 'sheep' that it is now more affordable to buy a condo at a lower psf. Just sign on the dotted line and down the road you will be rich.
 
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