Not too long ago, a million-dollar home in Toronto was enviable. It used to be a sure sign of an affluent, well-appointed house. Not anymore. Given the limited number of listed homes in upscale areas, and the ever-growing demand for Toronto among the world’s most liveable cities, the luxury real estate segment is showing no signs of cooling off. There isn’t a better time to invest in luxury condominiums for sale if you have a taste for the high life and prefer the convenience of condo living over a detached home.
According to the Toronto Real Estate Board (TREB), the first quarter of 2017 alone shows the luxury real estate market shattering every existing sales record for homes costing over $2 million. According to statistics, as many as 1,185 $2 million plus properties were sold between January 1 and March 31 of this year; up 137 percent from 500 units that were sold in the same period in 2016. While sales of $2 million homes doubled in this quarter, sales of $5 million homes tripled. The definition of what constitutes a luxury home is constantly changing, and buyers are showing steadily increasing eagerness to invest in Toronto’s prime locations.
High-End Home Segment Showing Unprecedented Growth, and will Continue
Recently, the Ontario government announced a new 15 percent tax for foreign buyers, and gave the City of Toronto the power to impose taxes on vacant homes. The move has caused some uncertainty, and while it remains to be seen how the market plays out, most experts and realtors are unsure if prices will really come down. Here are some reasons why the luxury real estate market is growing unabated:
- Canadian Real Estate Tends to Bounce Back: As a country, Canada is deeply invested in real estate. The industry accounts for approximately 12 percent of the nation’s gross domestic product, and nothing seems to keep the real estate business down for too long. The Vancouver home market has risen after a short period of uncertainty, and the same goes for Alberta, which has revived after its two-year contraction. Toronto is the queen of the real estate pack in the country, overtaking all other markets. The expectation is that the city will hold up well in the future too.
- High Investment Value in Toronto’s Real Estate: Such is the demand for upscale locations in the city, that home buyers are willing to overlook the actual appearance of a house. Small, decrepit older properties with no proper lawn or parking spaces are finding no trouble getting buyers as long as the area has real estate value. Bidders are competing for the tear-down of such tiny lots, as the value placed is for the land, and not the house. Prices for homes within Toronto’s core is growing because houses are in short supply, and buyers know that going further from the city would mean less real estate value.
- Foreign-Tax May Have Less Impact on Toronto: The Vancouver luxury real estate market did take a considerable hit after a 15 percent tax was imposed on foreign buyers. With Ontario levying the same tax, there is some uncertainty in the market. However, realtors do not expect the Toronto luxury market to be affected, as they feel that foreign buyers constitute a much small percentage of the population in Toronto compared to Vancouver. Realtors argue that most people buying homes in Toronto are doing so with the intention of living here.
- Toronto’s Economic Fundamentals Remain Strong: Toronto continues to be looked upon as a safe, secure, and financially robust city that offers plenty of opportunities. Hence, the city continues to attract people from within and outside Canada who want to make Toronto their home. Steady immigrant population, low interest rates and better salaries are all indicative of why the demand for real-estate just keeps growing.
Owning a Luxury Condo in Toronto’s Downtown Is Still Possible
While the demand for luxury real estate properties in Toronto continues to grow across all categories, the supply isn’t keeping up. This is one of the reasons The Davies’ new luxury condo building near Avenue Rd. and Cottingham, Yorkville is garnering a lot of interest among buyers. You can expect classy interiors, elegant outdoor spaces and the best of building amenities. Living in the downtown core at Yorkville, you will find yourself amidst a throbbing social scene with access to the plushest hotels, trendy shopping malls, spas, health clubs, local schools, and TTC routes. Even as you relish the downtown sights and bustle on one hand, the condo’s location overlooking the Robertson Davies Park affords you the opportunity to enjoy nature’s beauty in different seasons.
For more details on this new condo project in Toronto, contact The Davies at 647-360-9588 and schedule your appointment or register online for more information. Check out possible floor plans for your new condominium and discuss options with our team.