Condo prices on the rise in Durham; rent prices spiking too

As sale prices for new homes started skyrocketing last year, condo sales stayed stagnant as buyers saw high-density living as a drawback during a pandemic.

Those days are over now, as condo sales have now jumped 170 per cent year-over-year – outpacing new homes by 20 per cent – with Durham Region among the leaders in the sales race.

With so many people vaccinated and lockdown restrictions being eased, buyers are no longer fearful of high-density downtown living and have returned to embrace the affordability factor: the average price of a GTA condo is $682,000 vs $1.4 million for a detached home.

Condo prices in Durham Region are among the cheapest in the GTA but they have also experienced the biggest jump, spiking 46 per cent since this time last year, from $364,700 to $571,382, according to figures from the Toronto GTA Rent Report.

Rent prices are also on the rise, which is good news for landlords but bad news for tenants. Bullpen Research & Consulting of Toronto is forecasting rent growth of 12 per cent to 14 per cent next year when the borders open, tourism ramps up, students return to campus, and many office towers are back to full capacity.

Rent prices declined dramatically last year in most of the GTA and are still down 11.4 per cent in May. Oshawa prices for condo and apartment rentals are down just two per cent from this time last year.

But the rental market in the GTA is trending back up again, says Ben Myers, the president of Bullpen Research.
“With Toronto entering the next stage of COVID-19 reopening, tenants will be reminded of the benefits of a centrally located apartment or condominium rental, as patios fill up and boutique retail shops open,” he said. “We expect an increase in leasing activity as tenants look to take advantage of the current incentives at many buildings before they disappear.”

The average price of a one-bedroom apartment in Oshawa is $1,564. In Ajax it’s $1,707. Vaughan, Markham, Oakville and Toronto have the highest prices, with Vaughan topping the list at $1,905.

For three-bedroom apartments, Toronto wad the highest at $3,122 per month.