toronto condo prices

Condo prices are tanking in Toronto's downtown party neighbourhoods

They may be hot among tourists looking for Airbnbs to crash at on weekends, but Toronto residents appear to be growing less-enchanted with condos in neighbourhoods like King West and The Village.

A new report from the real estate data analysts at Strata indicates that while Toronto condo prices are well on their way to rebounding from a pandemic-induced lull across the board, a few neighbourhoods are actually seeing an opposite trend emerge.

"Party neighbourhoods like King and Queen West are still sitting at March levels with The Village at its lowest since January," said broker of record Robert Van Rhijn in the newly-released report.

"Rental demand is still strong in areas known for their entertainment value, but buyers don't seem to be flocking here as much."

King West, Queen West, The Village and the Distillery District — all trendy areas known for their bustling nightlife and / or ample attractions — actually saw decreases in average condo prices over July of 2021.

This is in defiance of wider trends in the downtown core, where the average cost per square foot of a condo reached $1,088 last month, higher than both May and June.

"Pre-pandemic, these neighbourhoods were famous for their restaurants, bars and nightclubs. And of course, the hip young people that frequented them," writes Strata of the aforementioned hoods.

Conversely, office-heavy areas in the Financial District are seeing prices rise even faster than normal.

The Bay Street Corridor alone saw the average cost per square foot of a condo jump up to $1,200 in July. Now halfway through August, Strata shows that the average unit in this neighbourhood is selling for $893,000 — an increase of $113,000 over the month previous.

"When we looked at all the data on a map, the neighbourhoods with an uptick in sales activity had a higher concentration of workspaces,” said Van Rhijn. "The writing's on the wall as people face the reality that they'll eventually have to return to the office."

And it's not only office workers, but students attending Ryerson and U of T. 

"There are lots of students from wealthy families who opt to buy instead of rent," said Van Rhijn. "So that's also contributing to some of the bidding wars in this area."

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