https://mailchi.mp/4287525e4074/is-dundas-jarvis-worth-investing
Market Review of
Dundas East
(near Jarvis)
Yonge St. - Sherbourne St.
Gerrard St. - Adelaide St.
Dundas East Neighbouhood is rough
Is it worth investing?
I HATE this neighbourhood.
Especially Dundas & Jarvis area.
I had my first job at Sears, back in 2008.
There were lots of bums and...
unpleasant people...asking for money.
BUT
who care about how I feel?
If I can make money, I will invest.
Prior to any project launch,
I like to analyse the area
to get a sense for $psf and avg. rent.
I find that this gives me a better feel for
whether a project is good value or not.
As you can see,
Dundas East didn't realy pick up
until 2017.
There's a significant jump from 2016 to 2017.
The reason for a sub-par growth until 2015 was
mostly because of the "unpleasantness" factor
of the neighbourhood.
Compare to the West side of Yonge,
this area used to be HUGE VALUE PLAY!
Starting in 2016, a couple of condo projects were complete.
PACE condo by Great Gulf,
GRID condo is just closing now. (as of April 15, 2018)
The transformation is on-going.
Regent park used to be the most
notorious neighbourhood in Toronto.
Over many years, the area has gone through
an amazing transformation!
That's why Dundas East is shooting up in value.
And you can expect that this will continue.☺️
Because it's soooo close to Ryerson University.
There's a lot of demand for student housing.
Also close to Dundas Station,
Based on 377 condo sales in the past 12 months,
the average $psf is
is all over the place!
This table is pretty unreliable,
if you look at the size of the units
in the red box,
1Bedroom unit is 1,613sqft???
This is clearly an anomaly.
As a Data Analytics person,
I would recommend condos.ca to do
some data cleansing.
Anyhow,
if you look through some dirty data,
you can infer that
new condo's should range in the
$900+psf
range.
Keep in mind, this is just the average.
Average of units on the low floors with no views
and units on high floors with amazing views!
List of all units
currently on the market for sale.
(as of April 15, 2018)
(sorted by $psf ascending)
(limited to units that had accurate size in sqft)
Prices range from
$733 (old building)
to
$1,215psf (new building)
Look closely,
all the low price units are
lower floors, very likely with bad views.
As you go down to the bottom of the list,
units are on higher floors.
Wait a minute!
What about Normalisation?
If you've been following me,
you should know this term by now.
In order to properly do a comparison
between resale condos
and pre-construction condos
you need to normalise,
'apples to apples' comparison.
Remember how we do this?
From the average resale price in the neighbourhood,
Deduct the price of parking and locker,
then deduct closing fees.
(We call this normalising,
for proper comparison between
pre-construction condos and resale condos.)
Going back to Dundas East,
if we normalise the numbers,
the prices range from
$628 (old building)
to
$1,060psf (new building)
(no parking, no locker, closing fees removed)
What can we say about the latest project in this neighbourhood?
IN.DE Condo is accepting worksheets right now.
Studio North view
$385,990
($962psf)
Studio South view
$401,990
($1,036psf)
1B West view
$485,990
($953psf)
1B South view
$481,990
($964psf)
1B+D North view
$680,990
($941psf)
2B NE view
$580,990
($938psf)
3B NW view
$790,990
($935psf)
Pretty much the starting price
of all units are
good value.
Why?
They would rather sell out quickly
than not be able to sell.
Smart developer.
Of course, they are Menkes, one of the best.
---------------
"
I'll do the analysis,
you make the decision.
"
Kee Park 416-493-3955
