Three bedroom units are a rarity in Toronto as they make up only 3% of the condos sold each year on MLS. Therefore not all Toronto condo buildings feature 3 bedroom suites and if they do they usually amount to less than a handful of suites in the building.
Often times these suites are the result of reconfiguring a 2 bedroom plus den floor plan or putting two units together in the pre-construction phase. This creates a 3 bedroom unit that is one of a kind with a unique floor plan to the building.
Three bedroom units also tend to be in luxury condo buildings that accommodate larger suite sizes.
Why so few 3 bedroom condo units in Toronto? You have to go back to the development stage of a condo building to find the answer. Unlike other cities around the world, Toronto has a different lending framework when it comes to financing the developers of condo projects.
The banks say to developers, before we are going to loan you a dollar for your project you have to have at least 75% -85% (or whatever the metric) of the units pre-sold in order for us to finance you. The developers can only start construction after this sales target has been met.
The challenge then comes with pre-selling a 3 bedroom unit to a family. The family has to put down a 20% deposit for a condo to be delivered 4 to 7 years from now. The time lapse is critical for a family who needs the unit now and cannot wait. There in lies the disconnect with delayed supply only available in a marketplace of immediate demand.
Developers would like to build 3 bedrooms but they can't pre-sell them and if they can't pre-sell them they simply don't get built.
As Toronto house prices rise to unaffordable levels for many, demand for 3 bedroom condo units has increased dramatically but that demand is for 3 bedroom units that are ready now not for units that will be ready several years down the road. Developers of luxury condos in Toronto cater to downsizers and people who have multiple residences around the world and for these luxury buyers the floor plan of choice is often the 2 bedroom plus den or library.
Because of the limited numbers of three bedroom units, when they do come up for sale they sell very quickly, so its best to retain a good real estate agent who can notify you as soon as these units are listed for sale in your condo building of choice.
Contact Me to find out more about opportunities to purchase 3 bedroom units in downtown Toronto
Victoria Boscariolis a real estate agent in Toronto Canada with Chestnut Park Real Estate Limited Brokerage. With over 20 years experience, Victoria has been helping people successfully buy and sell condos and houses in Yorkville and downtown Toronto. As a Certified International Property Specialist (CIPS) she has worked with Buyers from around the world moving to Toronto from China, Russia, Brazil, India, South Africa, United Arab Emirates, Jordan, Cyprus, Italy, Germany, The United Kingdom, Australia and the United States.