One Mississauga neighbourhood boasts lower-than-average condo prices
Mississauga might be an expensive city for prospective homebuyers (the average home price hit $992,008 in February 2020, after all), but some neighbourhoods boast affordable condo units that are more attainable for first-time buyers and people on a budget.
Strata.ca, a real estate platform that provides information on every condominium in the Greater Toronto Area, recently released a report looking at the GTA neighbourhoods with condo prices that fall below the regional average and one Mississauga neighbourhood made the list.
According to Strata.ca, the Dixie-Applewood neighbourhood remains one of the most affordable for condo buyers in the GTA, with units averaging $599,000.
Applewood, one of the city's more mature neighbourhoods, is located on the east end of Mississauga on the Etobicoke border. The neighbourhood, which boasts a vast array of housing options, is close to City Centre, the Dixie GO station, the QEW, Dixie Outlet Mall and Sherway Gardens.
Other neighbourhoods on the list include Old East York (East York), Flemingdon Park (North York), West Mall (Etobicoke) and Thornhill (Markham).
Strata.ca says that condo values in the GTA have risen 9 per cent in the past 60 days, with the average sale price currently sitting at $669,000.
“Dixie-Applewood is filled with townhomes and condos built in the late 80s and 90s. Many of the owners here have owned property before, and are simply looking for an upgrade. But they still tend to value square-footage over the sleek modern condos that can have more style than substance,” said Nathaniel Hartree-Hallifax, a real estate agent at Strata.ca, in a statement.
“Many of the lower-priced listings in Dixie-Applewood may need major renovations to bring them up to modern aesthetics. This tends to bring out a lot of buyers that specialize in renovating for resale.
Hartree-Hallifax said that some condos are better suited to homebuyers who aren't keen on tackling major renovations.
“Homebuyers simply looking for more space should opt for condos in Dixie-Applewood that don’t require a top-to-bottom reno. They should be looking for something that’s more turnkey.”
The report says Dixie-Applewood and the other neighbourhoods on the list are dominated by what the industry calls "1st generation condos"—large units built in the 70s and 80s that offer more space for less money.
With the pandemic slowing immigration to a standstill, units in the neighbourhoods are becoming more plentiful and therefore more affordable.
"The value found in 1st generation condos is enough to attract many first-time buyers, including new Canadians getting on the property ladder. But given there are fewer immigrants moving to the GTA at this time, I think it's easy to see why prices are softening in these neighbourhoods," Hartree-Hallifax said, adding that the prices won't stay competitive forever.
"In softer markets, you're more likely to be able to negotiate a sale with beneficial conditions and a better price. For potential homebuyers locked out of hotter neighbourhoods, these areas might be a welcome change. But don’t wait too long. The closer we get back to pre-COVID times, the quicker these dynamics will revert."
Strata.ca says that properties in the GTA suburbs have been a hot commodity since the start of the COVID-19 pandemic last March, with Mississauga and Markham seeing condo values soar by 9 per cent and 14 per cent respectively.
That said, savvy homebuyers can still find pockets of more affordable housing.
"People who want to make the move to the suburbs can find pockets in Mississauga and Markham where condo prices are still relatively cheaper. In the Mississauga neighbourhood of Dixie-Applewood, for instance, the appreciation rate over the past 60 days remains modest at just 1 per cent," said Robert Van Rhijn, Broker of Record at Strata.ca.
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