Parking is scarce in the downtown area despite the growing residential demand – a trend that has sent the value of parking spots up.
The average parking space in downtown Toronto would cost about $35,000, the Toronto Star
article said, quoting figures from Urbanation. Prices can get as high as $60,000 at the Florian in Yorkville and $100,000 at the Four Seasons.
For perspective, the Four Seasons also offers a penthouse for $28 million. But the fact remains that parking is an increasingly valuable commodity in the city’s real estate market.
A glance at Craigslist in Toronto shows a wide range of parking spaces renting as high as $200 to $350 per month in downtown locations. Parking certainly can drive the demand and value of condo sales in the city, and the latest news is likely to reinforce that even more.Toronto Star
business reporter Tony Wong said it might drive condo owners away from wanting to have cars.
“Now that parking lot values have outstripped the costs of the average car, some consumers will likely wonder whether it makes sense to drive at all, even if the developer throws in a free car,” he wrote.
Toronto is far from the lofty parking costs of a city like New York City, however, where in 2007, spots were going for as high as $225,000, which was higher than even the median house price at the time.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate