What is happening in markets for residential land in the Greater Golden Horseshoe?
December 19, 2017
Serviced land values for single-detached and townhome developments in the Greater Golden Horseshoe (GGH) had been growing at a steady pace between 2005 and 2014 – but then exploded in 2015 (Figure 1). New data released by MCAP, one of Canada’s largest independent mortgage financing companies, shows that prices doubled between 2015 and the fall of 2017. The price of a 30 to 36 foot frontage went from just over $200,000 in early 2015 per foot frontage to roughly $600,000 in the fall of 2017 (Figure 1). These price pressures have also spread into the condo apartment market (once a beacon of stability), where land values have tripled over the same time frame in some areas across the region. The data can be found on the MCAP website at https://www.mcap.com/development-finance/land-value-report.