Transit-Oriented Development in Markham — How the Highway 7 Corridor Is Reshaping Property Values

The physical landscape of Markham is about to change dramatically. Under Ontario's Transit-Oriented Development (TOD) policy, municipalities are being mandated to upzone land within an 800-meter radius of major transit stations. For Markham, this primarily impacts the Highway 7 corridor, Markham Centre, and the Unionville GO station area. Michael John Lau, Markham's top REALTOR® and a CPA/CMA, explains how this provincial mandate will reshape property values, create new investment opportunities, and introduce significant new housing supply over the next decade.

What is Transit-Oriented Development (TOD)?

TOD is a provincial policy designed to address Ontario's housing shortage by concentrating higher-density housing near major transit hubs. The policy requires municipalities to:

• Allow mid-to-high-rise residential buildings (typically 8 to 16+ storeys) within the 800m radius.
• Remove or significantly reduce minimum parking requirements for new residential developments.
• Streamline the approval process for TOD projects to accelerate construction.

In Markham, the Highway 7 rapidway and the existing GO Transit infrastructure make the corridor a prime target for this density. If you own property along Highway 7 between Warden Avenue and McCowan Road, your land's highest and best use is likely shifting from low-rise commercial or industrial to high-density residential.

The Supply Shock: What It Means for Condo Prices

The immediate impact of TOD is a massive increase in the supply of condo apartments. As developers assemble land along Highway 7 and begin construction, Markham will see thousands of new condo units come to market over the next five to seven years. From a basic supply-and-demand perspective, this increased supply will put downward pressure on condo prices, particularly for older, less amenity-rich buildings that cannot compete with the new TOD product.

However, this does not mean all condo values will collapse. Well-located, well-managed condos with strong reserve funds and unique amenities will still command a premium. But the era of speculative condo purchases expecting double-digit annual appreciation in Markham is likely over. The new reality is a more balanced, supply-rich condo market.

Land Assembly and the Speculation Tax

To build mid-rise or high-rise buildings, developers must assemble multiple adjacent lots. This process, called land assembly, is complex and expensive. In Markham, the provincial Speculation Tax — which applies a tax on the resale of residential property within two years of purchase — has complicated land assembly. Developers who need to buy multiple properties quickly are facing higher transaction costs, which can slow down the pace of TOD development. However, the provincial government has indicated it may provide exemptions for bona fide land assembly, which could accelerate development once clarified.

Strategic Positioning for Markham Homeowners

If you own property along the Highway 7 corridor, you need to have a long-term strategy. If your property is zoned for future high-density redevelopment, holding the property for the next 10-15 years may yield significant land value appreciation as developers assemble sites. Conversely, if you are a homeowner in an established neighbourhood just outside the TOD boundary, your property's value is likely to be supported by the scarcity of land and the desirability of living near transit without living in a high-rise.