What is happening in Downtown Mississauga?
, is the name of the strategic plan for City Of Mississauga’s forty year vision. This master plan envisions an intense, mixed use, transit and pedestrian oriented Downtown Mississauga. Following the global recession in the last quarter of 2008, the City of Mississauga has demonstrated its commitment to the goal of creating a vibrant Downtown Mississauga. The City has already invested millions of dollars in the development of Celebration Square, community Common Park and the partnership with the Sheridan College. The next phase of Sheridan College has also been planned by the City. The City of Mississauga is also pursuing a massive transit investment which not only covers the core but also connects most parts of Mississauga with the rest of the GTA.
So what’s coming in Downtown Mississauga?
Downtown Mississauga will soon become denser, meaning, more minor and local roads will be added to the Downtown Mississauga core including a Main Street ( starting from SQ One Mall to the south side of Burnhamthopre Rd W between Duke of York and Kariya Dr). Downtown Mississauga will be get more buildings (residential, commercial and mixed use). Hurontario-Main LRT project includes many LRT stations along Hurontario Street and throughout the Downtown core. The ground level of most buildings will showcase commercial and retail spaces. To achieve a mix of character and diversity, a combination of low rise, mid-rise and tall buildings will form the architectural skyline of the Downtown Mississauga.
Planned architecture of buildings in Downtown Mississauga
The City of Mississauga’s Standards for Shadows studies will also take into consideration the impact of wind, shade and shadow when designing these new buildings in Downtown Mississauga. Podiums will form the base of tall buildings where retail outlets, restaurants, patios, coffee shops, convenience stores, dental offices and convenience stores will thrive. Some of the mixed used retail office spaces in Downtown Mississauga might include offices, spas, mortgage brokers, dry cleaners, coffee shops, retail banking, dentist office, physiotherapist office etc.
Sustainability of Downtown Mississauga’s retail
The City has some aggressive plans to make Downtown Mississauga retail including mom and pop stores thrive. The City wants local businesses to grow and would like to bring back the local retail culture. My question to the City planners is: Can a small retailer afford retail real estate prices in Downtown core? An average rent for commercial outlet hovers around $50 per sq. ft. Can a 1,000 sq. ft. space shop owner (drycleaner, yoga studio, Subway, stationary) sustain, after paying over $50,000 in annual rental costs alone? I don’t think so!
Commercial is also coming to Downtown Mississauga
The City’s official plan proposes office buildings on the north side of Rathburn road and to the south of 403, between highway 10 and Confederation. In my opinion, this is definitely a great move in the right direction. There are many corporate clients who would like to make Downtown Mississauga as their base. This will allow all employees to live close to their work place, enjoy the vibrant Downtown Mississauga and also enjoy easy access to other parts of the GTA via GO Transit, LRT (Light Rail Transit) and BRT (Bus Rapid Transit).
The Condo market in Downtown Mississauga
Condos in Downtown Mississauga fall into four different segments.
- Older condo buildings ( buildings that are 25 years + in age)
- Younger condo buildings (buildings that are five to ten years old)
- Newer condo buildings (buildings that are less than five years old)
- Future condo buildings (buildings that are under construction and or those that are not built yet)
Each segment of Downtown Mississauga condos has experienced different price growths.
Older Downtown Mississauga condos
The older condominium buildings in Downtown Mississauga come with large size suites that are very popular with new immigrants who come with kids. There is a trend seen across all these large condos in Mississauga where the current residents are moving out to other type of properties like townhouses, semi-detached and detached houses in other parts of Mississauga and neighbouring cities like Milton, Oakville and Burlington. Often, sellers improve these properties to modern standards before selling them to potential buyers.Since most of these condos are 25+ years old, it makes a lot of sense to renovate these large suites with nicer interiors like new flooring, granite counters, stainless steel appliances, new cabinetry, new bathrooms etc.
There is a lot of demand for such upgraded larger suites in older buildings.
So, if you would like to know how the condo market of Downtown Mississauga is doing for older condo buildings, then my answer is yes, it’s doing very well! I personally move many sellers from these older Mississauga condo buildings to other types of properties in and around Mississauga.
Condo prices in these older condo buildings range anywhere from $240,000 to $ 300,000 for a large 1000 sq. ft. plus, 2 bedrooms, 2 washrooms suites.
Younger Downtown Mississauga condos
Younger condo buildings in Downtown Mississauga are also performing well when it comes to resale and price appreciation.
These buildings are well established, many investors who had initially purchased units in these buildings are selling for profits as their investments have grown over time.
If you are an investor who is planning to sell your Downtown Mississauga condo and re-invest in a better return real estate investment, contact me.
What once used to be investor (tenant) dominated buildings are now turning into user friendly buildings. Some of these buildings have been maintained well, are reputed and come with salient amenities that attract many first time buyers.
This trend should continue to grow as the prices of these younger condominiums in Downtown Mississauga is very attractive and affordable.
A first time buyer with a household income of $60,000 and a 5% down payment can look forward to receiving mortgage approval in a range of $240,000 to $260,000 for a condo.
This is the right amount to buy a nice one bedroom, one bedroom plus den suites, in these younger condo buildings in Downtown Mississauga.
Like I mentioned in my last year’s Downtown Mississauga report, the condo prices of these younger condo buildings will see a boost as a result of expensive newer condo buildings.
Newer Downtown Mississauga condos
Not every investor of these recently built condominiums is a happy person. Some of these newer condominium buildings were ridiculously priced when they were first launched.
It should take investors many years to recoup their investments or to even break even.
I wish that these Downtown Mississauga condominium investors had researched more and or contacted right real estate professionals who understand the local market.
One should know that not every new builder condo project is same in Downtown Mississauga, Downtown Toronto or anywhere in the world.
There are some very good condo projects in Downtown Mississauga, in which the investors should make handsome returns.
Most of these newer condo buildings in Downtown Mississauga are investor dominated (in my opinion, more than 70% of them are investor owned).
Over time, the number of investors will decrease as first time buyers will move in. In my opinion, renters have a big responsibility to keep their buildings in good shape as today’s renters are tomorrow’s buyers.
If you are looking to buy or sell into one of these newer buildings, you can get in touch with me as there are always good deals that I come across every day.
Future Downtown Mississauga condos
There are a handful of projects that are coming up in Downtown Mississauga. Some of these projects include Parkside Village’s four towers and Pinnacle’s Grand Park’s two towers. These projects were rightly priced and I don’t see any concerns.
Rental market in Downtown Mississauga
The high inventory of newly built condos in Downtown Mississauga has softened the rental price increases in the first quarter of 2013. This is exactly what I said in my last year’s Downtown Mississauga’s market report.
But with so many people coming and living in Downtown Mississauga, I don’t see any problem.
Local Experience Pays!
Buying and selling condos need pure local experience. No two buildings, projects, suites, floor plans etc. are same, when it comes to pricing a condo. Before you invest your hard earned money into buying a Downtown Mississauga condo, contact me at 905-339-5111.
Same rings true of selling and marketing a condo in Downtown Mississauga. If you are in the market for condos, do contact me or come and visit me at my Downtown Mississauga office located at 220 Burnhamthorpe Rd W #102.