Mississauga Resale Condo Market vs. Builder New Condo Market 2021

The current price gap between Mississauga resale and builder new condos that are due to be delivered in the next 4-5 years should be noted. It can make one wonder if the current builders’ price (in 2021) will increase by a lot at the time of delivery?

And even if the prices were to increase, will investors make handsome cash flow returns when they will rent these units? We had discussed this topic in our Mississauga condo investment basics blog post in Oct 2020.

Current High-Rise Condo Prices in Mississauga

As of August 2021, you can buy a good 530 square foot (approx.) 1 BR condo in the resale condo market of Downtown Mississauga for $530,000, ($1,000 p.s.f), 1 BR + Den for $570,000 and approx. 800 sq. ft. 2 BR for $$650,000 ($812 p.s.f.).  These prices include one parking and one locker.

When looking at the future offerings from Mississauga new builders, here is what you might want to know:

• As of today, resale Mississauga condos can be bought for $100,000 to $150,000 cheaper than many builder new condo in Mississauga. Builder condos with the delivery date of 2024 or 2025 are being offered anywhere between $1300 t0 $1400 p.s.f. on an average.
• Investors need to analyze all hidden costs, closing expenses, HST and other taxes that comes with buying builder condos.
• It is common to see that builders are now charging separately for parking and locker, which are being sold for around $50,000 and $5,000 respectively.
• Suite sizes are decreasing. Nowadays, builders have started to build miniature condos, that look very impractical when comparing sizes of resale condos (e.g.; 1 BR start at 400 sq. ft. and  2 BR condos start from 600 sq. ft. size).

In The Past, Resale Condo Market vs. Builder Condo Market Looked Different

There was a time when our investor clients bought dozens of new condo projects in Mississauga with closed eyes and are now/ will soon reap solid gains and positive cash flow when renting their condos. These types of gains simply cannot be replicated.

No doubt that condos are the future of real estate market. Condos present an answer to the housing shortage issue, simply because they offer a high density residential solution. There is also a lot of pressure on making housing affordable for first time home buyers and newcomers. So while there will be a lot of condo development, we can expect government measures to ensure that future condo prices remain within reach of consumers.

Mississauga Resale Condo Market vs. Builder New Condo Market 2021

Resale Condo Market Report September 2021 – TRREB Reports

What are the numbers telling us?

As per TRREB Q2 2021 Condo Market Report, the average condo apartment selling price was $686,312 which is 11% up by year-over-year in Q2 2021.

This also represents more than a 6% increase compared to Q1 2021. The City of Toronto, which accounts for almost 70% of Q2 condo sales, the average selling price was $721,109, which is up by 9% compared to Q2 2020.

“The second quarter marked a turnaround for the condo market in terms of price growth. Whereas other market segments experienced a resurgence in price growth in the latter half of 2020, the condo market took longer to recover. Looking forward to 2022, condo demand could very well strengthen as immigration picks up and younger people, more impacted by COVID-19, look to purchase a home.” 

The number of new listings entered into the MLS system was down year-over-year by 43%. The average condominium apartment price growth is now well-above inflation as well. On a seasonally adjusted basis, the average selling price continued to trend upward in August.

Condo Apartment Average Prices August 2021 (TRREB Market Watch Report)

Burlington: $610,653
Milton: $611,500
Oakville: $835,994
Brampton: $516,634
Mississauga: $589,979
Toronto: $720,832

Condominium Apartment Market Summary – Second Quarter 2021

Mississauga Old, New and Under construction Condos