What's Becoming of Toronto's Yorkville District

What's Becoming of Toronto's Yorkville District

Toronto has a love affair with the condo, with 28,466 new-build units purchased in 2011. Thousands more are planned. Suite size, price, amenities and architecture are important, but more and more, a building’s neighbourhood is being considered the ultimate draw. The second part of a lengthy series examining the GTA’s new condo ’hoods.

Bob Saunderson may know when Hollywood’s biggest names are strolling through his neighbourhood, but don’t ask him to point them out.

The British-born Yorkville resident says word spreads fast when a celebrity is in town, with the concierge at his Bay Street luxury condominium quick to divulge where the actors are wining and dining. Still, Mr. Saunderson can’t always keep up. In fact, he spent several mornings in a row chatting about soccer with a friendly young chap at one of the area’s eight Starbucks coffee shops. When the barista divulged that it was actor and Dancing with the Stars contestant David Arquette, “I still didn’t know who it was,” the 70-year-old chuckles. His friends are still ribbing him about it.

Though star sightings may be why many Torontonians flock to Yorkville — especially during September’s Toronto International Film Festival — people like Mr. Saunderson simply call it home.

The area has long been a coveted destination for the rich and famous, with residents tucked into swanky condos and million-dollar Victorian houses. Yet amidst the shoppers perusing the high-end boutiques, the professionals grabbing lunch between meetings, and the growing number of luxury hotel and condo projects in various stages of construction, the neighbourhood is trying desperately to hold on to its village feel.

The firehall, built in 1876 beside the long-gone town hall, still stands proudly on Yorkville Avenue and bears the original coat of arms (circa 1853). Nearby is the 105-year-old Yorkville Public Library, the 130-year-old Gothic revival Church of the Redeemer and the historic Heliconian Hall.

There’s a plaque on Pink Tartan’s boutique pointing out that it was once the sheriff’s house and the local jail. There’s still a hint of history at home and decor store Teatro Verde, where the first Mount Sinai Hospital once stood. Several houses along the attractive side streets reveal signs designating them heritage homes. And while Canadian singers such as Joni Mitchell, Gordon Lightfoot, Ian Tyson and Neil Young moved on long ago with the rest of the hippie generation, the steps in front of Over the Rainbow jean boutique still conjure up feelings of nostalgia for those on the cusp of midlife.

John Caliendo, co-president of the ABC Residents’ Association (an acronym for the boundaries of Avenue Road, Bloor Street and the CPR rail tracks), moved from New York into his Berryman Street home in the 1990s and has been carefully watching the dramatic changes taking place outside his door ever since. Though Yorkville was a popular place before he got there, he says the area was experiencing “a downturn in terms of its attractiveness” when he moved in. One “mega nightclub” was particularly irking residents and the area was losing its cachet.

But in the past few years — particularly when Whole Foods opened on Avenue Road — Mr. Caliendo has noticed new life in the air “that has completely revitalized traffic in Hazelton Lanes” and its surrounding streets. While many people living in the houses are singles or couples, he says parents working in the money management business have begun to move in. In a nod to the new kids on the block, the developer of the new Four Seasons Hotel is contributing funds to improve the playground and soccer field at the local elementary school that are used by students and the community.

Empty nesters, such as Mr. Saunderson, are also the new normal, drawn in by the dozens of condominium projects on the go or in planning stages. The buildings come in all shapes and sizes, from luxury low-rise structures like seven-storey 36Hazelton (rumour has it that actor Mark Wahlberg bought a place there) and 19-storey MuseumHouse (nightlife impresario Charles Khabouth is part-owner) to the 32-storey New Residences of Yorkville Plaza (the site of the iconic Four Seasons Hotel, which closes in March) and the long-awaited 70-storey One Bloor. Many dub themselves as luxury living, with suites priced into the millions of dollars.

Judging by sales, there seems to be no shortage of buyers, with many swapping large homes in such tony ’hoods as Rosedale, Forest Hill and the Bridle Path for a piece of the downtown action. They’re loyal to the local businesses, gathering at L’Unita restaurant for a midweek bite, Pangaea restaurant for Saturday lunch, and Zaza Espresso Bar for hot drinks and conversation with the sociable owner. They enjoy walking their dogs or people-watching in Cumberland Avenue’s Village of Yorkville Park, and they join visitors at the annual Icefest (taking place next weekend), at summertime’s Music in the Park, and at the fairly new exotic car show held in June.

“Our first-generation shoppers are moving down here, and our second and third generation shoppers are coming to visit them,” says Over the Rainbow owner Joel Carman, who has spent 37 years watching the changing landscape from the window of his landmark store. “In some cases, it’s a big circle, what comes around goes around. There’s only one Bloor Street and only one Yorkville.”

Sure, it hasn’t all been rosy for residents and businesses given the construction of the past two years that gave the main thoroughfare a facelift. The Bloor Street Transformation Project from Avenue Road to Church Street — a $20-million initiative fully funded by area businesses — has resulted in wide granite sidewalks and curbs, planting of 134 London Plane trees and 20,000 tulip bulbs, a sustainable soil cell system to promote optimal growth, and new bike rings and benches. A $1-million permanent art installation will go live at the Bloor/Yonge intersection later this year. Briar de Lange, executive director of the Bloor-Yorkville Business Improvement Area, calls it “the icing on the cake.”

“It’s a gift to the city from the Bloor Street community,” says Mr. Saunderson, chair of the Bloor Street Business Improvement Area that was formed exclusively to secure funding for the transformation project.

Now that the beautification project is complete, residents and businesses are continuing to focus their attention on the residential construction. Ms. de Lange says her group is monitoring the new developments to ensure they are “human-scaled buildings” that lessen shadow and impact to create a pleasant pedestrian-friendly look and feel.

“The challenge is maintaining a village charm,” she says of the high-rise construction.

Being a tight-knit bunch, both businesses and residents alike credit the BIA for its tireless efforts.

Mr. Carman is thankful for “some very bright and optimistic people” who are working hard to retain the area’s warmth and vitality. And it gives him hope that his stomping ground will maintain its allure into the future.

“If things are done properly and in scale and thoughtfully, I think Yorkville in five years can [still] be a wonderful area with great shopping, lots of vibrancy and outdoor cafes,” he says.

*Another great article from the National Post

Toronto Condos or Yorkville Condos

Toronto Real Estate Average House Price now 660,000$$$

The Canadian Real Estate Association has launched a new system for tracking home and condo sales prices aimed at giving buyers and sellers a more precise picture of what’s happening right in their neighbourhoods.

The new system will track Canadian and regional home sales and price escalations based on “benchmark prices.” Those benchmarks are based on quantitative factors (the number of rooms, bathrooms, age of home) and qualitative factors (proximity to schools, parks) and are intended to shine a light on highly localized factors that may be skewing prices up or down but not necessarily reflect market conditions.

CREA has also established a new MLS Home Price Index — similar to the Consumer Price Index which measures price inflation — that tracks prices relative to January, 2005 based on house type, be it single-family homes with one or two storeys, townhouses, row homes or condo apartments.

As of January, the benchmark price of a single-family home in Toronto hit $606,600 — $100,000 more than the $499,800 benchmark price for a similar home in the rest of Canada. That Toronto home cost 50.3 per cent more than it would have in January, 2005.

Over time, far more localized data will become available for MLS districts that should paint a clearer picture of neighbourhood trends.

“One of the key goals is to take a little bit of volatility out of housing statistics,” says Jason Mercer, senior analyst for the Toronto Real Estate Board. “It’s going to provide a good tool for consumers to understand where their home fits into the market.”

CREA will continue to release its traditional Canada-wide and regional breakdowns of average and median home prices, which it claims are often “misinterpreted” and can swing significantly, as national prices did last year when there was a rush of foreign investors snapping up homes in high-end Vancouver neighbourhoods.

Right now, just five major real estate boards across Canada are part of the new system — the GTA, Greater Vancouver, the Fraser Valley, Calgary, and Greater Montreal.

Eight more boards will start using the new measures this year, and another eight boards next year.

Toronto Condos .  Richmond Hill Real Estate

How TIFF headquarters and area condos plan to celebrate Toronto’s biggest bash

Condo living can come with fabulous perks — access to a luxurious spa, 24-hour concierge services, maybe even a five-star restaurant in the lobby. But recently, in celebration of the Toronto International Film Festival, developers have been literally rolling out the red carpet to welcome buyers at a number of new condos in Toronto’s entertainment district.

“We have a history of celebrating the festival. Two years ago, we had an amazing time when we opened Festival Tower. Ivan and Jason Reitman were here with us for [their film] Up in the Air,” says Niall Haggart, executive vice-president for Festival Tower developer, The Daniels Corp.  “It’s a chance for us to show purchasers that they are buying a lifestyle that is connected to TIFF. We like to do that with a party.”

This year, Daniels partied again. On Sept. 9, it hosted a red carpet gala event for future residents and prospective buyers at Cinema Tower — the company’s latest project in the area. Located at Adelaide and Widmer streets, one block north of festival headquarters at the TIFF Bell Lightbox, Cinema Tower offers a TIFF “interconnectivity”package for purchasers.

Each Cinema Tower buyer receives a three-year membership to the Lightbox, with special privileges during the festival and throughout the year. (Gala opening tickets, anyone?) Cinema Tower also has a private theatre for residents, with programming by TIFF executives, which will show films unlikely to be seen at typical mainstream cinemas. The only thing missing is a bottomless bag of popcorn.

And what about that party? Beyond nibbles and bubbles, the evening was to include a circus-style aerial performance and pyrotechnics display. Special guest Piers Handling, TIFF CEO, and other TIFF hotshots mingled with the crowd. This year, purchasers received tickets to buzz film The Ides of March, starring George Clooney and Ryan Gosling.

“We want our buyers to see what the festival does for the city and how being a part of Cinema Tower means you’re connected to all of that,” Mr. Haggart says. “The opening of the Lightbox last year means we’re at the epicentre of TIFF. The whole neighbourhood feels incredibly vibrant.”

Other developers in the area are making the most of the energy TIFF brings to the neighbourhood. Aspen Ridge Homes will host a friends and family soirée on Sept. 15 to launch its Studio 2  project located at Richmond and Duncan streets, two blocks north of the Lightbox. (Construction will begin soon on the company’s Studio on Richmond development located next door to Studio 2.)

Aspen Ridge will roll out a red carpet for guests as well and project movies on the walls of its sales centre throughout the night. The party will include a DJ, an espresso bar, a creative popcorn menu and other movie-themed munchies.

“There’s so much happening in the area now because of TIFF and the Lightbox. We want people to see that transformation and to see the action on the street. It’s going to be a very cool party,” says Aspen Ridge marketing manager Christene DeGasperis.

There’s no denying TIFF’s migration south from its former Yorkville hub. Now the hoopla is in the heart of the entertainment district at King and John streets, where the Lightbox draws a crowd during the 10-day festival and throughout the year. Yorkville, typically abuzz at TIFF time, is quiet compared to previous years. New haunts that are closer to the action, such as the Thompson Hotel and The Ritz-Carlton, have trumped former Yorkville hot spots.

The Ritz is packed with actors, producers, directors and cinephiles from around the globe. “The Ritz brand attracts people from all over the world and the hotel is located in the midst of the all the festival happenings. We expect everything — the hotel, the restaurant and the bars — will be running at a very high pace,” says Graywood Developments COO Stephen Price.

While the Ritz will host a number of private industry functions throughout the festival, Graywood hosted a TIFF party of its own just up the street. The company’s Mercer Condos , located one block south of King on Mercer Street, held a bash for buyers at the presentation centre on Sept. 8.

The iconic red carpet was replaced by a pink one (The Mercer’s signature colour), and guests were greeted by a human Oscar statue, painted gold and posing outside the sales office. Food, drinks and a DJ kept the movie-themed party going inside.

The Mercer is in an ideal location for people who are attracted to the festival, smack in between the Ritz and the Lightbox. Though the building will stand in the centre of the festivities, Mercer is a small private street, tucked away from the hubbub.

“The Mercer is in a unique spot, just a block away from the centre of it all and people are recognizing that. The people who live here will be connected to everything in the neighbourhood but still have the privacy of a quiet little street,” Mr. Price says.

Graywood hosted its Mercer TIFF party to thank purchasers, entice prospective buyers and allow everyone to experience the location at the height of festival activity. “There was a time when King Street was not necessarily a first choice for condo purchasers, but over the past five years, the area has seen tremendous growth in housing and cultural development,” Mr. Price says. “All the pieces are coming together and the movement of TIFF into the neighbourhood has really cemented the draw to the area for people who want to live downtown. Why not be at the centre of the action?”


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Toronto house prices could last forever!?

Every time it seems the Canadian real estate market is about to be torpedoed by higher interest rates, events around the world conspire to keep a lid on increases and spur a new round of furious buying among house hunters.

But does that mean the housing boom will last indefinitely?

“The misfortunes of other nations prolonged the real estate boom here at home, but it is hardly a secret that Canadians, including the governor of their central bank, are becoming increasingly anxious regarding current housing valuations,” CIBC World Markets economist Bejamin Tal wrote in a note Thursday.

While the world’s economic and political situation may not settle down anytime soon, Mr. Tal said the risk to the Canadian housing market isn’t actually as high as some think. That’s because the focus is often on average prices, which make things look a lot scarier than they actually are.

“Is it a bubble? Glancing at popular metrics such as the price-to-income ratio or the price-to-rent ratio, it is tempting to conclude that the housing market is already in clear bubble territory and a huge crash is inevitable,” he wrote.

“Tempting, but probably wrong. When it comes to the Canadian real estate market at this stage of the cycle, any statement based on average numbers can be hugely misleading. The truth is buried in the details—and there the picture is still not pretty, but much less alarming.”

While the average house price is still climbing by 8.6 per cent on a year-over-year basis, that number drops to 5.6 per cent if you exclude Vancouver. Pretend Toronto doesn’t exist either, and you get to 3.7 per cent.

Within Vancouver, the gap between average and median prices is near an all-time high – meaning the high dollar sales are skewing the average prices higher.

“So what makes Vancouver abnormal is the high end of its property market,” he said.

“So looking beyond the average price numbers reveals a highly segmented and multi-dimensional market that is probably influenced by different forces. But even a multidimensional market can overshoot—and the likelihood is that prices in the Canadian market and its sub-segments are higher than what can be explained by factors such as income growth, rent and household formation.”

He said given those variables, the market is bound to correct. For that to happen, he said interest rates need to spike quickly and/or high-risk mortgages run into trouble.

“In Canada, a sharp and brisk tightening cycle is unlikely. The market expects a gradual increase in short-term rates in the coming years,” he said. “The rising number of mortgage holders that carry a variable rate mortgage will be the first to feel the pain, but if history is any guide, they will return quickly to the comfort of a five-year fixed rate the minute the Bank of Canada starts hiking.”

Meanwhile, he found that the number of Canadians who could run into mortgage trouble is relative low.

“Households with both low equity positions and high debt-service ratios, we found that this fragile segment of the market accounts for only 4.6 per cent of total mortgages – a number that has been on an upward trend over the past few years,” he said.

“Shock the system with a 300-basis-points rate hike and that number would rise to a still-tempered 6.5 per cent. Historically, even in that group, the default rate has been well below 1 per cent. Thus, short of a huge macro shock, there does not appear to be the risk of large scale forced selling that would typically be the trigger for a precipitous plunge in the national average house price.”

His conclusion? While house prices are likely to move lower as interest rates climb, the “national pace of correction is likely to be gradual. That could still entail a period in which housing underperforms other assets as an investment class, until rising incomes and a tame price trajectory brings the market back to equilibrium.”

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TREB: Ford needs to follow through on election promise

Within the next few weeks, my presidential term with the Toronto Real Estate Board concludes. While this occasion certainly presents an opportunity for a time of reflection, it is more important to keep looking forward and to keep the spotlight shining on key issues such as the Toronto Land Transfer Tax.

Realtors and the public continue to look forward to the fulfillment of the election commitment by Mayor Rob Ford and numerous city councillors to repeal the tax.

It is clear that the public expects the mayor to move forward with the commitment and it is unlikely that they will forget about this.

This is a significant tax: it costs the average Toronto homebuyer almost $6,500 and, when added to the Provincial Land Transfer Tax, average Toronto homebuyers face almost $14,000 in land transfer taxes. Realtors look forward to working with the mayor and city council on a reasonable approach to deliver on this promise.

TREB has consistently opposed the tax as an unfair levy that hurts Toronto’s economy. TREB strongly believes that the commitment by Ford during and after the election campaign to repeal the tax was, and is, sensible.

Recently, the city’s budget chief has pointed out the budgetary challenges facing the city. Realtors believe that city council is moving in the right direction by conducting a comprehensive review of city services; we also strongly believe that the commitment to repeal the Toronto Land Transfer Tax can, and should, move forward.

A recent public opinion poll conducted by Ipsos Public Affairs for TREB found that 75 per cent of Torontonians support Ford’s commitment to repeal the tax.

In light of the budget chief’s recent comments, the poll contained interesting results. In particular, even when asked to consider the city’s expected budget shortfall, the public’s support for the repeal of the tax remains very strong, with 68 per cent of Torontonians believing that the mayor should follow through on this commitment, despite the vity’s budget challenges.

The poll also found that the public is paying attention to this issue: 61 per cent of respondents were aware that Ford has committed to repeal the tax.

We have an obligation to protect the affordability of home ownership for future generations. From job creation to providing a healthy and stable environment for raising a family, home ownership matters to people, communities and Ontario.

Toronto Condos

Global real estate trends

According to a recently released Global Real Estate Trends report from Scotia Economics, low interest rates and slowly improving economic conditions contributed to a slight global residential property market recovery.

From the 12 advanced nations polled, the estimated average inflation-adjusted home prices rose this year in six (Australia, Canada, France, Sweden, Switzerland and the U.K.), were stable in two (Germany and the United States) and dropped in four (Ireland, Italy, Japan and Spain). This is compared with 2009, when eight of the 12 markets suffered price declines.

The rebound lost some steam in the latter half of the year, mirroring the general loss of momentum in global growth, though regional performances remain highly varied," said Adrienne Warren, Senior Economist, Scotia Economics. "Despite still attractive borrowing costs, the expiry of purchase incentives in many markets, the relatively slow pace of job creation and mounting concerns over the financial strains facing debt-heavy developed nations are weighing on confidence. These factors will likely keep many prospective buyers on the sidelines in 2011."
Leading the pack for 2010 is the Australian housing market. This is attributed to things like low unemployment; similarly, lower housing supply is driving prices up. Other factors like consecutive interest rate increases by the Reserve Bank of Australia, and the end of enhanced First Home Owners Grant in January 2010, have brought some stability to a hot market. Average inflation-adjusted home prices in the third quarter of 2010 were up 9.4 % year over year compared with a 15.9 % increase in Q1.
"We anticipate a further slowing in sales and price appreciation in 2011," added Ms. Warren. "While Australia's close trade ties with Asia and resource wealth will continue to underpin a solid pace of domestic activity, higher interest rates will worsen already strained affordability. The RBA has recently taken pause, but we expect the resumption of a gradual policy tightening path in 2011, with short-term rates raising an additional 75 basis points by year-end."
Back at home in Canada, markets performed well, but were volatile. Contributing factors include an extraordinarily active winter and spring, anticipation of a hike in interest rates only partially materialized, and BC and Ontario’s introduction of the HST- all made the summer markets weaker than usual. Things rebounded in the fall, to bring back stability to the markets.
"We are neither overtly optimistic nor pessimistic regarding the outlook for 2011," stated Ms. Warren. "On the one hand, we expect interest rates to remain at historically low levels, with the Bank of Canada deferring any further rate hikes to late 2011 given an uncertain global economic outlook and subdued inflation, and longer-term borrowing costs drifting up only modestly. This is an extremely powerful inducement for both first-time and move-up buyers and should maintain a decent level of sales.”

There is expectation that demand will be affected by moderate employment and income growth .Public sector hiring was responsible for a third of the net new jobs created in Canada over the past year, - which is likely a one-time thing.

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Repeal of Toronto's infamous Land Transfer Tax!

These are interesting times at Toronto City Hall. Last fall’s election brought a new mayor and numerous new councillors, and they are promising to take the city in a new direction.

In this regard, one of Mayor Rob Ford’s most significant promises was to repeal the Toronto land transfer tax, an unfair tax that realtors have fought against since it was first proposed. We continue to oppose this tax and we look forward to working with the mayor to eliminate it.

Realtors were again hard at work on this issue recently, making our views known as part of the city’s 2011 budget process. In a deputation to the City of Toronto’s budget committee earlier this week, the Toronto Real Estate Board (TREB) told councillors that realtors are encouraged with the direction of the city’s proposed 2011 budget and believe that it is a significant step towards fulfilling Ford’s strong commitment to repeal the land transfer tax.

By demonstrating restraint and prudent fiscal management, the city’s proposed budget sets the stage for council to deliver on Ford’s clear commitment to repeal the land transfer tax by next year.

For years, GTA realtors have been telling the city that the fair way for it to address its financial challenges is to get its finances in order, instead of burdening homeowners and homebuyers with additional taxes.

Realtors fought strongly against the idea of a land transfer tax when it was first proposed in 2007. We heard the public’s concerns and we stood up for homebuyers, who we believe were being unfairly targeted by this tax. TREB’s efforts were strongly supported by the public, who also spoke out strongly against the tax. The public spoke loudly then, but they spoke even louder last October when they gave Ford an overwhelming and clear mandate.

The city’s proposed 2011 budget is an important step to delivering on the mayor’s mandate. In particular, it begins the process of addressing the city’s financial challenges with fair options, including cost-containment measures. Furthermore, it sets the stage for a forthcoming detailed program and service review, which Ford has announced will begin in March. This is an important process, and one that realtors have been calling for.

For years, Toronto’s taxpayers have been bearing the burden of unsustainable city budgets. We believe that the proposed 2011 budget stops the bleeding and that by moving forward with Ford’s commitments, including repealing the land transfer tax, next year’s budget will allow the city to flourish.

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