Prices fall in luxury Toronto neighbourhoods
The price of property in Toronto’s sought-after neighbours has fallen in the past 12 months due to the pandemic, research from Strata.ca has found.
In The Annex prices dropped by -29.96%, while there were smaller falls at Bloor-Yonge (-11.98%), Yorkville (-11.79%), Casa Loma (-11.13%) and Bay St. Corridor (-6.31%).
The drop has been caused by a shift in supply and demand, as Airbnb short-term rentals moved to the long-term market, while the likes of The Annex and Bloor-Yonge were impacted by a loss of student renters.
The pandemic has also enabled people to work remotely.
Sam Massoudi, real estate agent at Strata.ca, said: “I have investor clients who were once so proud to own a property in a luxury neighbourhood.
“But they had no idea a pandemic like this was going to hit and drive immigration out of the city.
“So now some of them have sold. For those who didn’t, they’re renting these places out for very cheap. That’s why we’re seeing such low rents in some luxury areas.”
Rents have also fallen considerably, as they dropped by 22.56% on the Bay Street Corridor and by 21.58% at Bloor-Yonge.
Not every sought-after area fits the overall trend however.
Indeed, prices have risen in The Junction (11.33%), Leslieville/South Riverdale (5.16%) and Regent Park (5.67%).
Robert Van Rhijn, broker of record at Strata.ca, said: “The Junction and Regent Park are still gentrifying, so I’m not startled to see values increase as cautious buyers hunt for better deals.
“Look, even during lockdown periods, we’re seeing bidding wars in these areas.”