Square One Real Estate Update – September 2016
Square One Real Estate Update – Shifting Market Trends
There was a time that investors made up for 70% of buyers in Square One. But summer of 2016 has revealed that this trend is changing. People have been priced out of homes in Mississauga and condos have now become the first choice for first time buyers. Investors who have made money from their condo investments made a few years ago are having a great time.
Some of them are continuing to keep their condo units rented out, or some are even selling condos and moving to investing in different properties. They are leveraging the gains they have made by investing in freehold properties with similar or better rental yields in areas outside of Mississauga, like, Milton, Brampton Hamilton etc. The gains from the sale of their Square One condo helps them to pay 20-25% down payment to buy a freehold home.
Square One Real Estate Update – Multiple Offer Scenarios on Condos
Recently we were working with a couple of different Square One condo buyers. Almost every time we used to get beaten by another party on our price offer in multiple offer situations. Competition is that aggressive even for condos . Market is moving much faster than even what experienced Realtors like me could imagine or predict.
We witnessed a spur in prices in 2012 which plateaued at an average growth of 3% per year till about April this year. Since then, the situation has changed quickly and drastically. By the end of 2016, I am expecting a 7-10% increase in condo prices. Condos that are priced around $350,000 (a trend I had alluded to in my previous condo reports) will be the top choice of first time buyers in the near future.
So now we are going to see condos not just as an investment option but one the only viable first time buyer opportunity in Mississauga. A lot of growth in the Mississauga condo market, especially the Square One condo market is expected. Prices are going to increase by a lot.
Affordability will make first time buyers buy and move into one plus den condos rather than two-bedroom condos. However, one bedroom condos will still be the first choice for investors because of the rental potential.
Rental market is super hot, like never before! These days, one bedroom condos rent for $1,550 per month, One bedroom plus den for $1,600 – $1,650 per month and two bedroom (850 sq ft in size) for around $1,800 per month. Prices go up to $2,000 per month for 1,000 sq ft sized condos. And of course more for other larger units.
Square One Real Estate Update – Downtown Charm Remains a Big Crowd Puller
Square One will continue to hold great prospects for real estate with the modernization of Square One where hundreds of millions of dollars have been poured into the mall, Celebration Square, Sheridan College and so much more. As a downtown hub, Square One will continue to attract people who like the fast pace and excitement of city centre living. Just last week I got a call from one of my buyers who had bought a home in Mississauga, to say they would like to rent their home and move back to Square One as they miss the buzz and the feel of Square One.
Another trend relevant to baby boomers:, we have actually moved quite a few families this year who have downsized from homes to buy condos. They have sold their big detached or semi detached homes in Mississauga and are moving to Square Once for the convenience, connectivity and activities that this area provides.
So overall we are witnessing a big shift in Square One demography from investors to users in downtown Mississauga. It is a great time if you are thinking of buying or selling Square One condos.
Square One Real Estate Update – New Upcoming Developments
M City – Rogers Condo Development in Square One, Mississauga
Rogers Real Estate Development Ltd and Mississauga Mayor Bonnie Crombie jointly unveiled M City, a $1.5-billion, 15-acre, 4.3-million-square-foot project at the south west corner of Burnhamthorpe Rd. and Confederation Parkway on September 27, 2016. Rogers has partnered up with Toronto’s Urban Capital Property Group and New York-based urban design firm Cooper Robertson are designing the project.
This builder new condo project will add 10 condo towers with approx 6,000 units for rent and sale in the downtown core of Square One. Prices will range between $200,000 – $750,000. Construction could begin by late 2017 or early 2018.
Edge Condos Mississauga by Solmar Development Corp
Another new pre-construction condo project in the pipeline is Edge condo towers on the southwest corner of Elm Drive West and Hurontario Street. The four towers will be 30 – 50 storeys high and will offer a mix of residential condos, retail spaces, day care centre and green spaces. The towers will offfer 1,367 dwelling units.