Studio Units Outpace One Bedroom Units in Price Growth

The RealCondoInvestor.ca web site provides three unique capabilities to Real Condo Investors and their Realtors: Track, Learn and Analyze.   The Track tool provides an estimate of value changes for new condos in pre construction or under construction.  The Learn feature provides professional grade, independent market updates on a monthly basis and the Analyze feature helps sophisticated investors gain powerful market insights quickly and easily using RealNet’s official new home market data.  We wanted to share an insight from the RealCondoInvestor Analyze Tool we found when we ran a comparison of the price performance in new One Bedroom Condos vs new Studio Condos

If we compare all Studio Condos in the GTA against all One Bedroom Condos by price/sf since January 2008 we find the Studios are up 50% during that time while the One Bedrooms are up only 30%.

Current price/sf,  as at Feb. 28, 2011 was $587/sf for Studios and $528/sf for the One Bedrooms. For the 2 years from January 2008 through December 2009, Studio pricing actually averaged $2/sf less than One Bedroom pricing. Over the last 12 months, Studios have average $59/sf more than One Bedroom pricing, and that’s where the gap currently sits.

Of course, supply by unit type and the geographic distribution of those units also needs to be investigated to determine if that relationship holds in different submarkets. Use RealCondoInvestor.ca to drill down into those different submarkets to see what you can learn.

If you’ve purchased a new pre construction or under construction condominium, go to RealCondoInvestor.ca and click on the “Get Your Value Report Now” button to receive a complimentary one time report showing estimates of value changes to your unit from the time you purchased.  Ask your Realtor about sponsoring your access to the site.

About Steven Hurst

VP Analytics, RealNet Canada
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