Downtown Mississauga real estate market May 2011

/, Condos, Investing, Square One Condos/Downtown Mississauga real estate market May 2011

Downtown Mississauga real estate market May 2011

Downtown Mississauga real estate market – 2011 Update

Downtown Mississauga Condos Report

Rental market

Looking at the condo rental comparison, it is evident that the rental market has increased by almost 70% for 1 bedroom suites, but the corresponding price increase has gone up merely by 2%. The highest no. of rental units increase has been in 1 bedroom category. Unfortunately, no data is available for 1 bedroom + den units in the Toronto MLS Data report.

There has been approx. 30% increase in no. of rentals, compared to same period last year. Rents however, have merely increased by 2-4%.

Resale market

In condo sales side there has been a substantial drop of 28% in the number of listings, 1 bedroom units in Square One area is an exception. The price has also increased, and the highest increase has been seen in the 2 bedroom + 2 washroom units.

In my opinion, Mississauga has a strong growth prospect as prices are still very low compared to downtown Toronto. Mississauga condo market thus might make a better sense as buying price to rent ratio looks attractive in comparison to downtown Toronto. In other words, an investor will require a smaller down payment to invest in a Mississauga condo in comparison to one in downtown TO (obviously same size and type). And mind you, one does not pay extra to buy a parking space when buying pre-construction condos in Mississauga.

Downtown Toronto vs. Downtown Mississauga

Recently, Moneyville.ca came up with an interesting report about Downtown Toronto condos. The gist of this report is that the prices have shot up much steeply and much faster, than the rentals have grown. While the prices have increased by 3.5% (resale condos) and 8.4% (new condos), as per the report, the rent has only gone up only 1.1%. It has become less attractive for investors to keep buying condos and putting them on rent unless investors choose to move their territory, from expensive downtown Toronto, to more affordable downtown Mississauga, where the growth prospects are better. Like Toronto, there is also a demand and supply issue here as there is not much supply of land available in Mississauga.

There are a lot of renters who look at downtown Mississauga living as a luxury lifestyle not far from downtown Toronto. This, coupled with a good inflow of affluent immigrants and children of baby boomers who have started to work and want to buy or rent in the heart of Mississauga fuel popularity and demand for this area.

I have seen many non-resident foreign investors, come to Mississauga and invest in pre-construction projects. If you are looking at pre-construction projects or a resale condo, contact me.

Disclaimer: My blog post does not dispute benefits of Downtown Toronto living and its value for people who live and work (users) in Downtown Toronto. I am just discussing investment aspect for condo investors and flippers. Do you think prices will keep going up?

Also read: Downtown Mississauga investment

By | 2017-02-07T20:30:39+00:00 May 21st, 2011|Categories: Buying, Condos, Investing, Square One Condos|Tags: , , |Comments Off on Downtown Mississauga real estate market May 2011

About the Author:

Amit Kalia
Amit is a full time local REALTOR® since 2003. Currently he is with RE/MAX Real Estate Brokerage Inc. in Mississauga. RE/MAX is Canada's #1 real estate company. He is supported by a very strong Sales and Marketing team. Together with his team, Amit has been serving property sellers, first time buyers, real estate investors, landlords, renters, new immigrants to Canada and non-residents. Amit and his team specialize in Square One condos and also work in many other Mississauga neighbourhoods. Team Amit Kalia offers a 30 Days Sold Guarantee to Sellers. Amit's team also provides exclusive A La Carte property management services for their investor clients and landlords.