Invest in the Growing Segment of Luxury Condominiums for Sale
A measure of how well the high-end real estate segment is performing in Toronto can be gauged from the sale of $1 million homes in the GTA – a whopping 19,692 units – an increase of 77 percent in 2016, compared to 2015. Sale of luxury homes worth $4 million in the GTA soared 95 percent year-over-year to 290 units.
New regulations have been brought in by the Ontario government to control the upward spiralling of prices, but customer sentiment around Toronto’s real estate remains buoyant, and realtors are not expecting any significant cooling off in the luxury segment.
Toronto’s Luxury Real Estate Market is Surging Ahead of Vancouver and Montreal
The red-hot Vancouver market cooled off considerably following the introduction of the 15 percent foreign buyer tax. Home sales of $1 million fell 56 percent to 290 units in the first two months of 2017, compared to the same time in 2016. Many home owners and buyers refrained from making decisions in an uncertain environment, causing sales of $4 million homes to decrease 71 percent to 35 units in January and February 2017, compared to 120 units sold in the same months. While listings have come down, and activity in the market is returning to moderate levels, the prices of homes have not been affected.
Calgary, which recorded excellent figures in the high-end home sales category, suffered post its oil crisis. Slowly, but surely, optimism is returning to the city as sales of homes above $1 million are seeing 19 percent gains in 2017, compared to the same time last year. Calgary still remains a buyer’s market though.
Quebec’s political stability and strong economic fundamentals are helping Montreal to see steady gains in the top-tier real estate segment with sales of homes over $1 million increasing to 13 percent in January and February, 2017, over the same months in 2016.
In all this, Toronto’s real estate market is zooming ahead of the rest recording unprecedented sales in the high-end segment. Sales for homes over $1 million and over $4 million in the GTA are expected to surpass previous gains and record exceptional performance this spring.
3 Reasons Why Toronto’s Luxury Segment is Unstoppable
- Relative Scarcity of High-End Properties: There are only so many high-end homes available in upscale neighbourhoods of Toronto. While development-worthy land is limited, the population has been growing steadily, and the city’s economic fundamentals are strong. Prices are being pushed up by the dynamics of lower supply and higher demand.
- Confidence in Canada’s Real Estate Market: Nobody believes that Canada’s real estate market can be kept down for too long. Even though the government’s multi-pronged policy introductions in Vancouver caused a significant decline in home sales, they haven’t caused any noticeable change in home prices. Realtors are approaching even Calgary with cautious optimism, in spite of its uncertain economic climate. The Ontario government is making efforts to cool Toronto’s scorching real estate market, and some correction in prices could be expected. However, even in the worst case scenario, home owners are not expecting to lose any money in Canada’s robust real estate market.
- Political and Economic Stability: Canada’s low dollar and domestic stability are two highly desirable reasons why the country is looked upon favourably by foreign immigrants and real estate investors. Toronto, with its employment opportunities and cultural diversity is now viewed as a premium world-class city. Also, compared to other top cities like Paris, Tokyo and New York, Toronto is still considered way more affordable.
Looking for New Luxury Condos in Toronto? Your Search May End Here!
The luxury real estate market, especially in the single detached home segment, is expected to see further growth in Toronto this year, which could make these properties out of reach. Why not own a luxury condo in a prime location instead? The luxury condo segment within Toronto is as robust as any, with condo sales volume for properties over $1 million rising by 85 percent compared to 2006.
If you are considering investing in a luxury condo, The Davies, located right next to Robertson Davies Park at Avenue Rd. and Cottingham, is an unmatched opportunity. Nine storeys tall, with a choice of different floor plans, the condo building has only 36 residents and 8 unique penthouses. Private and luxurious, your condo will boast tastefully created interiors, great outdoor settings and several building amenities. The condo’s location near Yorkville – Toronto’s own 5th Avenue – is another jewel in its crown. The downtown core is an eclectic mix of posh restaurants, high-end shopping options, patios, cafes, museums, galleries, hospitals, highly-rated local schools and easy access to TTC routes. You are overlooking the Robertson Davies Park, so you can retreat into a serene setting when you have had your day’s fill of the hustle-bustle.