Rental returns in Toronto are moderate

Residential Valuation Specialist | January 31, 2019

Last Updated: Jan. 31, 2019
TORONTO -DOWNTOWN condos PRICE/SQ.M. (US$) YIELD (p.a.) PRICE/SQ.FT. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
Bay. St. Corridor 8,827 32.40 4.40% 820 3.01
Church Village 8,202 33.91 4.96% 762 3.15
City Place 7,696 31.54 4.92% 715 2.93
Distillery District 7,847 31.22 4.77% 729 2.90
Fort York 7,589 30.68 4.85% 705 2.85
King West 8,439 34.45 4.90% 784 3.20
Queen West 8,504 34.55 4.88% 790 3.21
St. Lawrence Market 7,912 31.22 4.73% 735 2.90
The Annex 7,793 35.52 5.47% 724 3.30
The Core 9,010 34.55 4.60% 837 3.21
The Waterfront 8,633 31.32 4.35% 802 2.91
Yorkville 10,947 35.63 3.91% 1,017 3.31
TORONTO-MIDTOWN condos
Casa Loma 8,644 28.96 4.02% 803 2.69
Mount Pleasant West 7,729 30.79 4.78% 718 2.86
Rosedale-Moore Park 7,417 26.91 4.35% 689 2.5
Yonge-Eglinton 7,675 27.99 4.38% 713 2.60
Yonge-St Clair 7,610 27.23 4.29% 707 2.53
VANCOUVER condos
Coal Harbour 14,295 n.a. n.a. 1,328 n.a.
Davie Village 9,311 n.a. n.a. 865 n.a.
Downtown 11,023 n.a. n.a. 1,024 n.a.
Gastown 7,922 n.a. n.a. 736 n.a.
Kitsilano 8,450 n.a. n.a. 785 n.a.
West End 10,990 n.a. n.a. 1021 n.a.
West Point Grey 8,041 n.a. n.a. 747 n.a.
Yaletown 9,774 n.a. n.a. 908 n.a.
MONTREAL Condos
Cote des Neiges/Notre Dame de Grace 3,089 n.a. n.a. 287 n.a.
Mont Royal 3,380 n.a. n.a. 314 n.a.
Outremont 3,595 n.a. n.a. 334 n.a.
Plateau Mnt-Royal 3,423 n.a. n.a. 318 n.a.
Rosemont/Petite-Patrie 3,057 n.a. n.a. 284 n.a.
The Sud-Ouest 3,757 n.a. n.a. 349 n.a.
Verdun 3,025 n.a. n.a. 281 n.a.
Ville-Marie 3,789 n.a. n.a. 352 n.a.
Villeray/St.Michel/Parc Extension 2,960 n.a. n.a. 275 n.a.
Westmount 4,327 n.a. n.a. 402 n.a.
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: Condos.ca and JLR, Inc Definitions: Data FAQ See also: Update Schedule

Get updated rental yields data for 75 countries

Rental returns on apartments in Montreal tend to outpace those in Toronto.  We´ve found in recent years that even on a largish 120 sq. m. apartment in Montreal, you are likely to earn a gross rental return over of 4.5%. If you own a small apartment of 60 sq. m. in Montreal and rent it out, you are likely to make a return of around 6%. In this low-return era, in a low-risk country such as Canada, that is a really acceptable yield. However unfortunately this year we don´t have yields data for Montreal, so in saying this we are relying on an extrapolation of previous years´ figures.

In Toronto, gross rental yields are lower, at between 3.9% to 5.5%, sometimes even lower. Taking account of the fact that we give gross figures - a guess might be that net yields would be 2% lower.

We continue to find it hard to collect yields figures for Vancouver.

Transactions costs in Canada are usually reasonable. The Canadian property market is cooling.