I’ve seen it many times over in the Bay/Yonge Street condo corridor: Just about every building in the area from College Park, to Lumiere, to Burano and to Aura, they each undergo a significant increase in value during the first and second years of existence as a registered building.
The downtown core is in love with new, and buyers prove this every time a condo is registered with the flurry of activity surrounding it. Sometimes there is incredible supply that comes onto the market at the moment of registration, which may rock the pricing and make it challenging to pinpoint the market value in the first few months with so many units available, but other times the more prime units trickle out and that raises the demand for the building.
As a condo buyer, one of the best times to purchase in my opinion is not necessarily during pre-construction, but rather right at the point of registration because you have all of the benefits of new condo ownership without the risks of the pre-construction period. You get to physically walk through the space rather than mentally picture it with a floor plan, know exactly what your purchase expenses are rather than estimate builder’s closing costs and fees, and be able to rent or live in the unit almost immediately rather than wait for an unknown number of years.
Certainly you lose out on the years of appreciation previous to the registration date, but you still have the opportunity to gain from the coming number of years when the market value of the unit will likely escalate as more people find out about the finished project.
As far as the Yonge Street Condo corridor is concerned, Five Condos is one of the next buildings to register, so if you’re looking for something new, this is very likely one of your best bets for investment and/or personal use right now.