Investing in Oakville condos has paid off five years later
Published April 29, 2024 at 11:36 am
People who bought condominiums pre-COVID-19 have seen their investments soar, but nowhere more than in Oakville.
According to a report from online real estate company Zoocasa, the location of where you purchased your condo in Halton has an effect on how much equity has been built.
“Condo apartments can offer a gateway to home ownership, presenting a more affordable entry point for first-time buyers. In the past five years in the GTA, condos have served as a stepping stone to rapidly build equity,” said Carrie Lysenko, CEO of Zoocasa.
Condos offer an ideal entry point into the real estate market thanks to their comparatively lower prices in contrast to townhouses and single-family homes. Whether you’re purchasing your primary residence or planning to rent it out as an investment property, considering the potential for equity accumulation is crucial.
To see how much a condo earned since 2018, Zoocasa analyzed data from 22 GTA municipalities to gauge the equity growth of condos purchased at the average price over a five-year period, based on information from the Toronto Regional Real Estate Board.
Buying a condo in the GTA over the past five years has yielded significant equity gains. The average condo across the 22 cities analyzed experienced an impressive 48 per cent average increase in value since 2018.
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Additionally, 73 per cent of GTA cities saw the average condo price increase by at least 40 per cent.
In Halton, the most profitable place to buy a condo was Oakville, which sits seventh on the list despite having the highest initial cost among the 22 GTA municipalities. The average price of a condo in 2018 was $617,608 and it is now worth $955,004, an increase of 55 per cent.
The rest of Halton was well down the list. Burlington is 17th with a 39 per cent increase, from $437,624 to $610,450. Milton is 18th with a 38 per cent increase, from $447,988 to $619,281. Halton Hills is 19th, from $442,300 to $560,000, a 27 per cent increase.
Looking at the top three cities for the highest condo equity gains, Oshawa saw the most remarkable increase, with condo prices soaring 108 per cent over the five years. In 2018, the average condo price was $260,400, but reached $542,257 by the end of 2023.
Orangeville experienced a 75 per cent increase, with the average condo price rising from $334,000 to $584,900. Similarly, both Scugog and Clarington saw impressive 66 per cent equity gains.
The GTA cities with the lowest five-year growth included Vaughan with a 23 per cent increase, Innisfil with a 16 per cent increase, and Caledon at nine per cent. Despite these lower increases, they still reflect noteworthy gains.
Overall, homebuyers who invested in condos in 2018 reaped the rewards of the pandemic-driven surge in property values within the GTA and Toronto’s real estate market, resulting in significant equity growth.
To see the full report, visit here.
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