Toronto overlooks one of its richest resources, the Great Lake of Ontario. Downtown Toronto has many vibrant condos but very few have coveted water views, how much more is a water view actually worth? I definitely see the value in waterfront views and have watched Queens Quay condo buildings being erected from the dirt into the sky over the last 24 years.
While many people enjoy the escape of going for a walk or riding their bike by the water, there's something very unique about having a waterfront view. What could be more relaxing than sitting on your balcony, enjoying a cup of coffee while gazing out at the tranquil blue waves?
Many homebuyers may argue that having a view of the lake is worth the extra money. However, the question remains - how much extra should individuals expect to pay?
According to a new investigation by Strata, purchasers are willing to pay an average of 8% more as a premium, for views of the water from inside a Toronto Condo unit, for example along Queens Quay. If a unit costs $800,000, Buyers it seems are willing to pay an additional $64,000 for a unit facing the water versus the same unit facing a different direction. Whether or not paying this premium is worth it depends entirely on the preferences of the individual.
Aside from the waterfront view, there are additional factors that affect value. Let's dig a little deeper.
The Floor of the Unit
There are very few condos located close to the water but you can still find condos in the City of Toronto with water views from higher floors of condo buildings for example in Liberty Village or from a rooftop terrace of a townhouse on Stadium Road.
Condos positioned on higher stories command a premium price from buyers. As a result, the higher the floor height, the higher the cost per square foot of the unit. However, there is no rule of thumb that the condo unit increases by an exact amount per floor. Keeping in mind it is more often about unobstructed views than the floor of the unit.
There are other variables to consider too, like renovations to the unit and types of appliances.
Layout is key. Is there good flow to the unit? Is the living room big enough to accommodate furniture and have room to walk around a coffee table? Is there enough closet space, kitchen cabinet space? Bonus if the Master bedroom can easily fit a king size bed plus end tables. Is there wasted space or not usable space (hallways)? Split bedroom plans are also more popular (bedrooms that are not beside each other). The larger the floor plan of overall square footage, usually lends itself to a higher value especially if the unit has a water view.
Is it a Corner Unit?
Corner condo units also command a premium since they provide more privacy, more natural light with extra windows and maybe even a bigger balcony.
Which Direction is the Unit Facing?
This is subjective as to preference. The direction has an impact on the condominium's sale price as well depending on where the condo is located. Condos facing east, for example, see the sunrise great for the early risers or getting a good set of blackout blinds is essential if your bedroom faces east. South and west condo units get more sunlight. North views could be the quiet side of the building or have a stellar view of the City lights at night. Is the unit facing a park? Low rise buildings, is it foreseeable if the view is a ‘forever view’?
What Type of Amenities Does the Condo Offer?
Some purchasers may be uninterested in the amenities that are available. However, in today's market, the majority of purchasers are looking for convenience. Amenities such as a swimming pool, lounge, gym, rooftops with BBQs could be the deciding factor. Visitors’ parking? Many new condos do not offer free visitors parking and guests will have to pay. Buildings that are 10 plus years typically have free visitors parking which can be an added bonus.
What's in the neighbourhood? For some buyers, the availability of basic necessities, such as: supermarkets, entertainment venues, public transportation, and a sense of community, are all critical aspects. How noisy is the area? Is there a Fire Hall, highway, or train tracks near the building? These factors all have an impact on the value of the condo.
Some Buyers will pay more to live in a more expensive location, like Yorkville, others choose a condo based on proximity to friends, some will want to be close to the TTC for a shorter commute to work.
I expect Toronto condos with Waterfront views to appreciate in value more each year due to the fact that so many new condos are being built in Toronto and those views could become obstructed and therefore devalue those units. A water view can be almost ‘priceless’ to many Buyers.
The selling price of a waterfront condo in the city of Toronto is determined by a number of factors. It's crucial to understand the components that go into condo pricing. You might also want to seek assistance from a reputable realtor such as myself. Whether you're looking to buy a condo or sell one you already own, establishing its true market value is essential.
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To understand the value of your Toronto waterfront condo, contact Melissa Henderson today!