Argue the details, but rising home values undeniable

One of Toronto's more ambitious redevelopment projects took root in 1999 on the site of the demolished Greenwood Racetrack on a desolate stretch of Queen Street East just west of the prime Beaches neighbourhood.

Over 1,000 semi-detached and detached homes were built on the site between Woodbine and Coxwell avenues, to generally mixed reviews. Old-school Beaches residents were generally pleased that the racetrack riff-raff were now expunged, but wondered if the new influx of so many young families was a little much for the precious pocket to handle.

Others thought the area could use fewer low-rise homes and more condo suites or even rental units.

The unapologetic suburban aesthetic to the redevelopment, with derivative home designs wedged into close quarters, seemed to reveal that not much thought had gone into distinguishing it from a typical subdivision in Whitby, or wherever. Even some residents would refer to it euphemistically as Pleasantville, riffing off a movie of the day that waxed nostalgic on life in an uptight and bland town.

But five years on, the resale values of most of these homes have erupted well past the $500,000 mark, with no shortage of interested buyers. The commercial stretch of Queen Street East to the north is beginning to firm up in spite of a shaky start brought on by ambitious rents. And long-term Beaches residents, always a tough crowd to please, grudgingly acknowledge that the redevelopment has brought more amenities and improvements to the area than it would have seen with a racetrack or vacant parcel.

The Greenwood project is known among planners as brownfield redevelopment; taking a redundant industrial or commercial parcel and turning it into housing. It's one of two ways to build new housing in Toronto proper, and probably the only way to do it on a large scale. The other is infill development, which deploys unused land such as redundant hydro corridors or surplus residential property.

As the development land supply dries up in the suburban pockets, the brownfield option is looking more appealing, if builders can get costs under control.

"There are some large-scale brownfield development opportunities," said Kent Wengler, vice-president of research for PMA Brethour, adding that some builders are looking longingly at underutilized shopping plazas in Etobicoke and Scarborough. "What's prohibitive is the price of the land."

That's one reason why condos are more likely to be the first residential option under consideration, followed by semis and townhouses, with detached singles way down the list.

"Where there is an opportunity on larger scale brownfields, you'll get more towns and semis."

Mr. Wengler reports that a builder recently secured a 56-acre parcel for brownfield redevelopment in the Wilson Avenue and Highway 400 area for about $900,000 an acre. A similar parcel of undeveloped residential land in Vaughan would cost about $450,000 an acre, though it would likely lack municipal services, but those would be absorbed through hefty development charges passed on to the buyer.

A former Canadian National Rail yard is the site of The Conservatory Group's Upper Beach Estates development, a 307-lot low-rise project between Victoria Park Avenue and Main Street north of Gerrard Street East, south of the Danforth GO station, and not very from the Greenwood Racetrack redevelopment.

Launched in February, 2001, about 50 of the homes are still available and ready to move in to, a mixture of semis ranging from $379,900 to $454,900 and detached homes from $472,990 to $482,990. The townhouses are all sold, but the Conservatory Group is planning to launch an additional 70 or so this spring to coincide with a rapid commercial revitalization effort along Gerrard Street East.

The home designs have improved from the Greenwood redevelopment to include high-ceilinged lofts on the second floor of many residences as well as gabled roofs and brick exteriors that fit in well with the existing architecture of the neighbourhood, according to sales consultant Latif Habib.

"Our target market started out being younger professionals and families, but it has turned into catering to move-up buyers from The Beach, Leaside, High Park and Riverdale," said Mr. Habib, adding that a number of commute-weary buyers have also filtered in from Oakville, Burlington, Ajax and Whitby.

First-time buyers in Toronto still tilt strongly toward condos and townhouses, however, with their target price set between $250,000 and $350,000.

"There isn't a lot of new homes [in central Toronto]that fall into that category. Townhouses are probably the strongest segment," said Ted Tsiakopoulos, a senior market analyst for the Canada Mortgage and Housing Corporation. "If you look at the demographics of who buys these [new semi or detached homes in central Toronto] the income is pretty strong."