Toronto Real Estate News from the Week of July 23rd
Toronto Real Estate Headlines
Notable Headlines Featuring Real Estate in Toronto from the Week of July 23rd
Massive Toronto Development to replace Entire Street of Small Houses
A block of single-family homes in Toronto's Denarda Street is slated for a significant transformation as developer KingSett Capital aims to replace 14 vacant single-detached homes with an impressive two-tower condo complex featuring 509 condominium units. Designed by Giannone Petricone Associates, the 44 and 43-storey towers will be located near the future Mount Dennis station on the Eglinton Crosstown LRT, offering excellent transportation options for residents. With only 28 vehicular parking spaces planned, the development emphasizes access to nearby transit stations and includes ample bike parking. While such high-density redevelopments may raise concerns, the area is witnessing a surge in similar projects, signaling a potential shift in the neighborhood's skyline and landscape driven by improved local transit infrastructure.
Some are Predicting Real Estate Prices to Increase by Year End
According to a new report from Royal LePage, despite the Bank of Canada resuming its interest rate hiking campaign, the aggregate price of a home in the Greater Toronto Area (GTA) is expected to remain mostly unchanged for the rest of the year. The firm revised its forecast, anticipating a year-over-year price increase of 11 per cent, in contrast to their previous prediction of a two per cent decline. However, this increase is primarily attributed to the market's rebound in the first two quarters of 2023 from a prolonged slump. Over the remainder of the year, Royal LePage expects the GTA's aggregate home price to see only a marginal rise of about 0.5 per cent or $6,000. Despite the surge in demand, tight competition, and supply shortages, the report notes that the current housing market is still strong, with educated and determined buyers prepared to make purchases. Although the cost of borrowing is at a 22-year high, buyers with secured rate holds are still actively participating. The report also forecasts a national aggregate home price increase of around 8.5 per cent to exceed $821,000 in 2023.
The Wraps are Taken off A Toronto Landmark
After five years of being concealed under construction netting, the historic building at 2 Queen Street West, a Toronto landmark dating back almost 130 years, has been meticulously restored to its former glory. The restoration, initiated in 2017 by property owner Cadillac Fairview and led by heritage architects ERA, has successfully repaired generations of damage to the building's original Victorian-era design. The project also includes a contemporary glassy addition designed by Zeidler Architecture, which now sits atop the restored heritage facades. Throughout its long history, the building has seen numerous tenants, including the Philip Jamieson Clothing Company, but it is most famously known as the F. W. Woolworth Building, having been home to the company from 1913 until the 1990s. Over the years, the building underwent various unfortunate modifications, including alterations in the early 1900s and the 1960s when large sections of the original exterior were covered with metal panels. With the restoration now nearing completion, the revitalized 2 Queen West will be better integrated into the Eaton Centre complex, offering two office levels and a third floor with a restaurant and outdoor terrace, providing visitors a glimpse into the rich architectural history in the bustling heart of Toronto. Despite a recent fire that caused minor damage during construction, the restoration project aims to preserve the building's historic charm for future generations to admire, much like the successful transformation carried out on the Dineen Building at Yonge and Temperance a decade earlier.
Tenants Renegotiating the Best Deals As Toronto office Vacancies Remain Elevated
Downtown Toronto's office market has shifted in favor of tenants, as businesses seek to reduce their office space, leading to a decrease in the real cost of rent despite stable published rents. Landlords are offering various inducements, such as free rent months, increased capital for renovations, and fully furnished suites, effectively lowering the net effective rent (NER). The transition to remote work during the pandemic has left many office skyscrapers half-empty, creating a surplus of available space and prompting landlords to compete for tenants with attractive incentives. The downtown office vacancy rate has risen significantly, with sublets by existing tenants making up 30 per cent of the available space. Incentives offered by landlords have led to a decline in NER over the past few years. However, the average asking rent remains relatively steady, as landlords are reluctant to officially lower rates to maintain the building's value. Tenants negotiating new leases are benefiting from reduced rents, with some paying up to 30 per cent less than pre-pandemic rates. The competitive market has allowed businesses like Mintz and MNP LLP to secure prime spaces at significantly reduced costs, providing a positive outlook for tenants seeking office space in Toronto's downtown core.
