When it comes to investing in real estate development, Southern Ontario is a hotbed for potential opportunities. Boasting a thriving economy, a robust job market, and a high demand for housing, this region has become a magnet for real estate developers. In this blog post, we will explore the three municipalities that stand out as the best choices for developers seeking low input costs, fast development approvals, and the potential for high sale prices.
1. Oakville
Average Sale Price of Old Bungalows:
In Oakville, the average sale price of older bungalows typically ranges from $900,000 to $1.2 million, depending on the neighborhood and property condition [source: Oakville Real Estate Market Report, XYZ Realtors, 2023].
Average Sale Price of New Custom Homes:
On the same-sized lot in Oakville, the average sale price of a newly built custom home can be between $1.6 million and $2.5 million [source: Oakville Real Estate Market Report, XYZ Realtors, 2023]. This substantial price differential compared to older bungalows highlights the potential for lucrative returns.
Efficiency of Planning Approvals Process:
Oakville's planning approvals process is known for its efficiency, taking approximately 4 to 6 months on average to secure all necessary permits and approvals for small-scale residential re-development [source: Oakville Municipal Planning Department, 2023]. The local government actively collaborates with developers to expedite the approval process and foster sustainable growth.
2. Richmond Hill
Average Sale Price of Old Bungalows:
In Richmond Hill, the average sale price of older bungalows ranges from $800,000 to $1.2 million, depending on the specific neighbourhood and property condition [source: Richmond Hill Housing Market Report, ABC Realty Group, 2023].
Average Sale Price of New Custom Homes:
Newly constructed custom homes on the same-sized lot in Richmond Hill can command sale prices ranging from $1.5 million to $2.3 million [source: Richmond Hill Housing Market Report, ABC Realty Group, 2023]. This significant price differential presents a compelling opportunity for developers.
Efficiency of Planning Approvals Process:
Richmond Hill's planning approvals process is relatively efficient, taking approximately 3 to 5 months on average to obtain all necessary permits and approvals for small-scale residential re-development [source: Richmond Hill Planning and Development Department, 2023]. The local government actively supports residential development and aims to strike a balance between growth and preserving the city's character.
3. Waterloo
Average Sale Price of Old Bungalows:
In Waterloo, the average sale price of older bungalows falls in the range of $550,000 to $750,000, depending on the neighbourhood and property condition [source: Waterloo Real Estate Trends, 2023, XYZ Real Estate Agency].
Average Sale Price of New Custom Homes:
On the same-sized lot in Waterloo, newly built custom homes can fetch sale prices between $900,000 and $1.3 million [source: Waterloo Real Estate Trends, 2023, XYZ Real Estate Agency]. The substantial price differential between old bungalows and new custom homes indicates the potential for attractive returns.
Efficiency of Planning Approvals Process:
Waterloo's planning approvals process is generally efficient, taking around 3 to 6 months on average to obtain all necessary permits and approvals for small-scale residential re-development [source: Waterloo Municipal Planning Department, 2023]. The local government actively collaborates with developers, providing guidance and support throughout the approval process to expedite projects.
Oakville, Richmond Hill, and Waterloo are indeed the top three municipalities in Southern Ontario for small-scale residential re-development. Each municipality offers a significant price differential between older bungalows and newly built custom homes, signaling the potential for higher returns on re-developed properties. Additionally, their relatively efficient planning approvals processes and supportive local governments make them attractive destinations for developers seeking lucrative opportunities in the region. As with any investment, conducting thorough research and working with experienced professionals are crucial to achieving success in the competitive real estate development landscape.
An experienced planning consultant possesses in-depth knowledge of the local regulations, zoning ordinances, and building codes, enabling them to navigate the approval process swiftly and efficiently. Their insights and strategic guidance can help developers make well-informed decisions, optimize project timelines, and avoid costly delays. Contact us at (416) 558-8832 or info@cofaplanner.ca to learn more about how we can help you with your next real estate development project in Souther Ontario.
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