New & Pre Construction Condos in Scarborough
Why You Should Invest in Scarborough Real Estate
Scarborough is located in the eastern part of Toronto, almost towards the boundary, with Victoria Park Ave in the west, the Rouge River in the east, Lake Ontario to its south, and Steeles Avenue to its north. It records one of the biggest populations in the Greater Toronto Area with around 650,000 people and rising. Given its strategic location, it only makes sense to invest in Scarborough real estate, if not for future rental business, but for its high resale potential. Purchasing a pre-construction condo in Scarborough could yield significant gains in the future when the property is already completed and fully functioning.
Here are some of the reasons why investing in Scarborough real estate is an excellent idea:
- Affordable neighbourhood
Some of the areas in Scarborough have the lowest average real estate prices in the GTA, making it perfect to invest in property now. There is a huge emphasis on “now,” because properties are also seeing a rapid rise in value as investors steadily flock to the area to take advantage of its relatively low rates. Due to the low supply of property items and the sudden influx of interested buyers, real estate values are seeing an instant increase. With that said, if you have the opportunity to purchase pre-construction condos in Scarborough, make no hesitation and snap the deal up straight away.
- High condo appreciation rate
Scarborough logged the highest condo appreciation rate in 2020 at 2 percent year-on-year. Condo prices in Malvern, for instance, rose 14 percent in the year, signalling the large unmet demand for property in the area. As more developers build condos, homes, and commercial property in Scarborough, one can expect property prices and values to continue going up to fulfill the also growing need for structures. Pre-construction condos are typically sold at a significantly lower value because they are purchased very early on in the development process. Purchasing one now would mean that you could see a return on investment in about two to three years from now, depending on the project’s timeline.
- Diverse population and locations
There are some 25 neighbourhoods in Scarborough, and some of the GTA’s most notable landmarks are here. These include The Rouge Valley, Scarborough bluffs, and the Toronto Zoo. It is also very close to the 401 highway, providing easy access to stunning beaches.
Average Condo Price for Scarborough in 2021
The average price for a pre-construction condo unit in Scarborough is $790 per square foot, and the appreciation rate for this market has been at 6.5 percent over the past decade. This compares to the average rental rate of $2,200 per month. The vacancy rate at present is at 1.7 percent, indicating a strong demand for such properties, whether to own or to eventually rent out. Scarborough’s per capita income sits at around $19,400 per year, compared to the provincial income average of $22,840.
Scarborough had humble beginnings, starting as a cluster of backwood villages to become a key residential and commercial area that continues to attract investment. The municipality used to be just an oft-forgotten part of Toronto City but was amalgamated into the area along with York, East York, North York, and Etobicoke. Throughout its history, Scarborough assumed many names, including Scarberia (mix of Siberia and Scarborough), mostly because of its proximity to Toronto’s core downtown area.
Accessibility / Getting Around
With its continuously evolving and advancing transport system, getting to and from Scarborough is more convenient than ever. The city intends to turn the area into an urban hub, and this is why it is getting plenty of attention from real estate investors. To date, there are around 4,200 condo units in Scarborough, with applications for almost 3,000 more in the pipeline. Getting around the area is easy and convenient because of its efficient public transport system. GO Transit has two key train lines running across, and it has seven GO stations. It is also just minutes away from 401 Highway and a two-minute drive to Markham Road.
Is it a good time to buy a condo in Scarborough in 2021?
The short answer to this question is “yes.” There is no better time to invest in pre-construction condos and other real estate in Scarborough than now. With the area getting an influx of investment demand over the past year, placing your money in a pre-construction property, for instance, could yield a significant return on investment pretty quickly.
What do I need to know about buying a pre-construction condo?
The most significant but often overlooked element you need to understand about a pre-construction condo is that it could take a while for the property to be completed, depending on the project’s proposed timeline and other market factors. This means you won’t be able to occupy it or start remodelling to your desires right away. If you are purchasing a condo that isn’t built yet, you need to be more forward-thinking about this decision. Elements to consider are location, amenities, carrying costs, present and future fees, and the developer’s reputation and track record.
What do I actually own when I purchase a condo?
When you buy a condo, whether in Scarborough or anywhere else, your ownership rights are limited to the condo unit itself, plus interest in the common areas of the project. Depending on developer guidelines, you can renovate your condo space as you wish to reflect your preferences, whether you plan to live in it yourself or rent it out in the future.