Why Should You Invest In Ajax Real Estate?
Ajax is an important emerging market in the the GTA. It’s part of the Durham region, which has been seeing much more development in recent years due to the densification efforts in the areas surrounding the City of Toronto. This is a great choice for investment because of its accessibility to multiple highways, as well as public transit options that make it easy to get around.
According to statistics from the Toronto Real Estate Board, properties in the Town of Ajax have some of the highest appreciation rates in the GTA, as well as some of the highest rental income ROIs. Additionally, household income in this part of the region is 20 percent higher than in Toronto, another great reason to consider this lakeside town for investment.
From 2012 - 2015 Ajax properties have had the highest appreciation in the GTA at 33%. In its exciting Places to Grow act, the province of Ontario has named Ajax as an “Urban Growth Centre.” This act has put restrictions in place to protect portions of the GTA’s greenbelt area from being developed. Instead, more compact urban spaces are encouraged to undergo development, mostly in the form of condominiums, mixed-use projects and master-planned communities. This will be a more effective, practical, and sustainable method of accommodating the population growth predicted for the GTA, and Ajax is expected to be on the receiving end of a significant amount of that growth.
One of the most apparent reasons for why this is such a hot real estate market is its growth over the past fives years, which dramatically outpaced that of the City of Toronto. Toronto’s composite housing prices from the end of 2012 to the end of 2017 grew by a staggering 58%, but even still Ajax outpaced the city by its composite index growing by a whopping 72% over that same time period. With the town’s average condo price still far lower than that of Toronto, we also expect that it could have a higher ceiling than Toronto’s core.
The price growth over this time was largely influenced by the substantial population growth in the region. There were 119,677 people living here in 2016, which was a 9.2% growth from 2011. This doubles the City of Toronto’s growth, which was only 4.5% over the same time period.
In the past decade, Ajax’s population has grown by 48.6 percent, significantly higher than Ontario’s growth as a whole, which came in at 13.2 percent for the same period. A significant part of that growth involves students and young professionals in the 20-29-year age bracket.
The region is also undergoing a monumental downtown revitalization, evidenced by the $32 million investment into the downtown core. Once completed, homes in this new urban core will likely increase in value and be extremely in-demand by both prospective homebuyers and tenants. The region's strong labour force and high rental ROI rates also help make it an attractive option for the keen investor looking for an income property.
This town was long considered a bedroom community for the City of Toronto, but things are changing as the Durham Region is seeing substantial job growth of its own. In 2016, the region accounted for 196,713 jobs, which is an impressive 10.8% growth from just one year previous with 177,563 jobs in 2015. Ajax is making considerable contributions to the region’s employment by offering 26,726 jobs of its own. The nearby municipalities of Pickering and Oshawa offer the majority of the region’s jobs with 32,991 and 56,035 jobs respectively.
Average Price of Condominiums in Ajax
The average price of a resale condominium unit for the Town of Ajax in 2017 was around $344,338 – up 19 percent compared to 2016.
The average index selling price for a pre-construction condo apartment continues to grow, rising 6% to 8% from a year ago to $420 per square foot. The average selling price rose annually to $329,000.
The Town of Ajax:
The Town of Ajax, sometimes called Ajax by the Lake, sits on the shore of Lake Ontario in the GTA’s rapidly-growing Durham region. Bordered to the west and north by the City of Pickering and to the east by the Town of Whitby, it has a population of approximately 110,000. It’s one of the most accessible municipalities in the region thanks to the Ontario Highway 401.
Its downtown is centred around the intersection of Bayly Street and Harwood Avenue, with its bulk being located along the latter. It begins from the Rouge Valley Hospital in the south and extends northward to the 401. Currently, there are numerous local businesses in the area, but the area is about to undergo a $32 million transformation into a thriving and walkable community that will foster innovative new development models in an eco-friendly manner.
The town maintains a strong business network in its own right, with more than 1,900 local businesses and a local labour force of approximately 42,000.
Residents here enjoy an abundance of lifestyle options, including 37 soccer fields, 18 baseball diamonds and 6 indoor ice rinks. The area is not without its natural resources either, which include waterways and six acres of prime Lake Ontario waterfront, which remains mostly undeveloped and surrounded by parkland.
As it stands, many of the homes in Ajax are single-family, detached houses. The younger, more urban population, however, is increasingly interested in the modern condominium lifestyle. What does this mean for investors? It means some of the exciting new residential projects coming to Ajax will make great income properties.
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Accessibility / Getting Around
Ajax uses Durham Regional Transit for its public transit needs, and it’s great for connecting the disparate communities in Durham region together. The DRT is headquartered in Whitby, and it allows residents to conveniently travel throughout the entire region.
In addition to a robust local bus system that gets you around regionally, the town has its own GO station. From there, Toronto’s Union Station is a mere 35 minutes away, making the area great for professional commuters.
Drivers will love getting around the GTA from here too because Ajax is part of the Highway of Heroes section of the 401 Highway. It allows motorists to access the entire City of Toronto and beyond.
This lakeside hideaway is in a unique stage, poised for rapid growth and on the cusp of one of the GTA’s most exciting downtown transformations. Questions about making this your next stop for real estate investment? Contact us today, we love to chat!
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Questions & Answers
Is buying a condo in Ajax a good investment?
We think so! Many western portions of the GTA have already been developed. Now it’s time for the east to undergo a transformation and we’re starting to see the city and province committing to this. Cities like Pickering and Ajax are even closer to Toronto’s downtown core than Mississauga and Oakville, yet we haven’t seen the significant price escalations there like we have in some other regions, which means real estate is generally more affordable. We think that condos will be a great success in Ajax. Presently, there is no alternative housing for downsizers and young professionals, and many of them love the area, but want the conveniences of contemporary condominium living. The most recently built rental building in Ajax is over 30 years old! We also believe that eventually the distance to from Toronto to Ajax will seem even shorter as Toronto spreads outwards.
How can I invest in the newest condo developments here?
Firstly, it is important to familiarize yourself with the new projects coming to the area. You’re already in a great place, as our website is constantly being updated to reflect the newest developments and proposals. When you see a project that interests you, it’s a good idea to sign up for it. That way, you’ll be put on our priority list, which gives you the opportunity to have early access to floorplans and the benefit of pre-construction prices if you decide to go forward with a purchase. Learn about the pre-construction purchase process and discuss your finances with a professional to know how much you can afford. It’s important to be ready when the opportunity presents itself, so we suggest getting a mortgage pre-approval now. That way, you will know where you stand when it comes time to purchase your dream condo.
I keep hearing the term PDI. What does this mean?
PDI stands for Pre-Delivery Inspection. Before moving into your new condo, you will be invited to do a final walk-through with an inspector. This is just to make sure your unit is functioning properly and hasn’t undergone any damage. Any deficiencies will be noted and corrected at this time.
How do I inspect a new condo?
As we like to say, the more eyes, the better. Your PDI will take place with the builder, but you’re also welcome to bring your own inspector, family members or any other professionals you think might be helpful. Take your time! Open every door, check every electrical outlet, run the water, flush the toilets, use the microwave. Look for scratches, water damage, uneven plaster or flooring. Remember, the builder has the duty to repair all the imperfections before the unit gets occupied.
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