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By: Rohin Bansal
According to Infrastructure Ontario, potential extension of the Line 2 – Kennedy Line (Scarborough Subway Extension) has been proposed and planning is underway as of 2019. The subway will evidently replace the existing light-rail transit (LRT) line as it extends from Kennedy Station to the Scarborough Town Centre Station and extending north to a terminal station at McCowan Road and Sheppard.
The introduction of the subway system will provide easy access across the City of Toronto and therefore, will likely increase the values of the properties in the vicinity of the proposed Scarborough Subway Extension. The Scarborough Subway Extension will be a linchpin in bringing revitalization and redevelopment of the older areas of Scarborough along the Scarborough Subway Extension and beyond, therefore, giving Scarborough new life. Developers will try to come in to redevelop the area with residential townhouses, condominiums with commercial retail units, offices and shopping malls on older commercial and industrial properties near the Scarborough Subway Extension. Therefore, adding more value to these areas and at the same time revitalizing the areas. This will potentially include new Leadership in Energy and Environmental Design (LEED) buildings for environmental health, green spaces and parks incorporating new and sustainable development into these areas.
As a real estate investor or homebuyer, the opportunity to invest in these properties will be most advantageous right now because once the constructions of the tunnels begin, the properties nearby will potentially have raised a significant amount in capital. The potential increase in value of these properties will warrant renovating existing homes and providing new face lifts to older homes.
Rental rates will also go up significantly and may even be comparable to North York rental rates (i.e. along Line 1 – Yonge Line) as an introduction of the Scarborough Subway Extension will provide instant access to the rest of the City of Toronto and will also save time in commuting for young professionals. A wider range of tenants will also be interested in living in these areas since having a car will no longer be the deal breaker for many. Along with potential redevelopment, these areas can easily become attractive communities with boutique stores, shopping malls, laneway activities, green spaces, dog parks and new condominiums or townhouses. These will potentially attract young professionals and small families to live in these areas and thus, increasing your tenant pool if you are looking to rent your property.
Infrastructure Ontario, 2020. https://www.infrastructureontario.ca/Scarborough-Subway-Extension/