If you’ve ever wondered how high the land your home is sitting on may be valued, MCAP has you covered in their latest report.
Today, MCAP Financial, a Canadian mortgage finance company, released their recent market findings in the GTA & Southwestern Ontario Residential Land Value Market Report, which provides a snapshot of city-level and regional land values for the Fall 2018 period.
Land value is influenced by municipal policies and greater market factors, the impacts of which can affect affordability of housing and can incentivize developers to preference building specific types of housing over others. Just take a look at San Francisco, where urban density policies have forced the value of land above the buildings constructed on them.
Although the debate among Torontonians between East versus West may be alive and well, in the realm of high-rise condominium land values, the two are nearly tied. Downtown Toronto’s west and east wings share similar market values per square foot. The West End and north Toronto both valued at $160 to $170 per square foot, and downtown east hit $150 to 160 per square foot. The highest market-valued high-rise condominium land in Toronto is located in the Bloor-Yorkville area, for $240 to $250 per square foot, followed by the downtown core for $215 to $225 per square foot.
Across the Greater Toronto Area, land values for townhouse lots in most municipalities were greater than lots in the 30-36 f.f. and 40 f.f. categories. Trends in townhome lot values are particularly relevant in current housing debates. Ryerson University’s City Building Institute released a report in October 2018 arguing for the expansion of, “middle density development,” defined as “row houses, townhouses, walk-up apartments and low- to mid-rise buildings,” as a possible solution to housing availability and affordability crunches in the GTA.
One exception to the higher evaluation of townhouse lots in MCAP’s data can be found in Halton Region. Milton’s lot values mirror the greater GTA trend of higher valued townhouses, but lots in Oakville, across all categories, were valued between $19,000 to $20,000. Land values in Milton are similar to those in Peel Region, matching Caledon’s townhome lot value at $13,000 to $14,000, surpassing Caledon’s 30-36 f.f. value range of $12,000 to $13,000 by $500, and slightly trailing Brampton’s 40 f.f. lot valuation of $12,500 to $13,500.
According to MCAP’s report, the highest valued lots can be found in York Region. Across all three frontage categories, land in Markham was valued the highest in the GTA with townhouse lots valued at $29,000 to $27,000, the 30-36 f.f. lots valued at $23,000 to $24,000, and 40 f.f. lots valued at $21,000 to $22,000.
Richmond Hill’s land was the second highest valued, with its 40 f.f. lot values equal to those in Markham, while townhouse lots were valued between $26,000 to $27,000 and 30-36 f.f. lots were valued at $22,000 to $23,000. Lots in East Gwillimbury were the least expensive in York Region, with townhouse lot values of $9,000 to $10,000, matching those found in Oshawa.
MCAP’s recent data indicates that land values outside of the GTA are similar to land values within the GTA. Of the four non-GTA areas covered in the report, Hamilton’s land values are the closest to those within the GTA. Hamilton’s townhome lot values of $9,500 to $10,000 are greater than those in East Gwillimbury (York Region), Oshawa (Durham Region), and Clarington (Durham Region). The value of Hamilton and East Gwillimbury lots in the 30-36 f.f. range are roughly equivalent, as are the 40 f.f. lot values in Hamilton and Oshawa (Durham Region). These findings mirror the growing trend of real estate prices increasing in Hamilton.
To find out how more on pricing and preconstruction in the Greater Toronto Area, visit BuzzBuzzHome for more information.
Header Photos: James Bombales