Tracy Hanes – Toronto Star

When it comes to condo trends, small is still the suite spot.

Compact condo units have been a staple of the Toronto market for years and will be for some time to come.

“As prices go up and with the mortgage rules changing, they are going to get even smaller. The trend is going to continue,” predicts Ben Myers, president of Urbanation, a company that tracks the GTA condo market. “Developers are getting better at designing small suites.”

Many condo projects have units starting in the 400 to 500 square feet range. Some, such as Ice in the heart of downtown, have studio units that are just over 300 square feet.

To make the small units work, designers have been incorporating kitchens into the living/dining areas and including space-savers like Murphy beds that can be folded into a closet when not in use.

Myers says that in the fourth quarter of 2009, 72 per cent of condos sold were one bedroom or one bedroom with a den. Although buyers might prefer two-bedroom suites, not many can afford them, at an average price of $490 per square foot for units sold in Toronto that quarter.

Unit sizes aren’t all that is shrinking. Don’t expect condo towers to soar to new heights, either.

“Developers are realizing the length of construction is much longer than anticipated with really tall towers, and availability of credit is more difficult to get,” says Myers. “You are going to see shorter towers.”

The tiny-condo trend is being embraced by buyers, says Toronto Real Estate Board president Tom Lebour, who adds that people are considering lifestyle, not just square footage.

“First-time buyers are basically willing to sacrifice space for location and proximity to amenities,” he says, adding some have no desire to own a car.

“CityGate, the neighbourhood near the SkyDome, has the highest percentage of owners who do not have vehicles, bar none. People who live there walk everywhere. I know a young couple who had a beautiful townhouse in the suburbs and two cars. They bought a condo overlooking the SkyDome so they wouldn’t have to maintain a vehicle.”

The most popular areas among condo buyers are downtown, according to Myers. These areas do not come cheaply, though. Expect to pay at least $500 per square foot.

The King Street W. neighbourhood is dominated by Freed Developments, which has about 10 sites, mostly 12- to 15-storey boutique condos with high levels of finishing and design in the Fashion District.

All the condo development has been a revitalizing factor, bringing in boutique shops, restaurants, etc. and an active nightlife to the King West strip.

Liberty Village has strong appeal to first-time buyers who want to be close to downtown and are on a budget. Finishes are not as upscale as in King West, says Myers, but still of fairly high quality.

Queen Street West is less expensive than trendy King West and has projects with appeal to first-timers, such as Fusion by Urbancorp and the boutique condo Art.

The east waterfront will become a hotbed for new condos as the East Bayfront and West Don Lands come on stream, bringing residential neighbourhoods to former industrial brownfields.

The adjoining Distillery District has already proven popular with condo buyers. The West Don Lands will create 5,800 residential units on its 32-hectare site.

For buyers who can’t afford downtown, LeBoer says condos in Etobicoke are considerably less expensive and downtown is just a 20-minute subway ride away.

North York is another consideration, says Myers with “an amazing number of towers” near Yonge and Sheppard. Myers also cites the Etobicoke waterfront as an alternative to downtown ($400 to $460 per square foot).

He also suggests Markham, where several new condos are priced at less than $400 per square foot. Downtown Markham, being developed by Remington Homes, has several projects and will have a pedestrian-friendly environment, close to transit, with retail, entertainment and employment uses in the mix.

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Contact the Jeffrey Team for more information  –  416-388-1960

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