Investing in a Luxury Condo is a Wise and Timely Decision
Call it the direct consequence of Toronto’s red-hot real estate market or the eminence that Canada’s financial capital is gaining, luxury real estate prices across all segments are witnessing a massive surge. Since the development only concerns the top 1-5 percent of the population for whom affordability is not the problem, the story has largely gone unreported. However, global interest in Toronto gives us clues on how tight the housing market could get in Toronto.
According to London-based real estate consulting firm Knight Frank, luxury residential rents are rising faster in Toronto than anywhere else in the world. According to the company’s recently published Prime Global Rental Index, Toronto leads the rankings with prime rents growing by 8 percent year-on-year. The second on the list is Cape Town, South Africa with 6.3 percent growth. All other key cities around the world, ranging from Tokyo to New York, Singapore, Beijing, etc. have shown nil to negative growth. Toronto as a financial hub is still considered less expensive than other cities. However, with a growth rate as steep as this, no one can tell what the future holds.
What Explains the High Growth for Toronto’s Luxury Real Estate Rents
- Lack of Supply: The scarcity of high-end single detached homes is contributing to increase in demand for luxury condominiums. The sales of $3 million-plus homes (single detached) were up 86 per cent in the GTA last year, and the trend continues. Given the demand for the high-end housing market, many have simply opted for the less expensive luxury condos. Since condos are being snapped up very quickly, rentals have naturally gone up too.
- The Pre-eminence of Toronto: Toronto is gaining a strong reputation as a high-profile city. While other prominent cities in the world are becoming slightly less desirable due to political or economic reasons, Toronto is on firm turf, and is assuming the proportions of an economic powerhouse. The living standards are excellent; the city has a vibrant, multi-cultural vibe, and it houses some of the most respected educational institutions in the world. Toronto is frequently on the list of “most desirable cities to live,” and currently ranks 4th on the Forbes list. Not surprisingly, many people are eager to live and work here.
- Investment Opportunity: Foreign money does play a role in the luxury real estate segment. Vancouver’s 15 percent foreign buyers’ tax could have prompted many to opt for Toronto and the GTA instead, causing a surge in sales. Toronto’s red-hot real estate market is viewed as a promising global investment opportunity. However, with the Ontario government looking at measures to curb foreign investment, it is hard to tell which way the tide will turn.
- Fear of Rise in Inflation and Interest Rates: With the Trump administration talking about raising interest rates, there could be a spillover effect in Canada. Interest rates have been at a historical low for a long time here, and economists expect rates to go up. If and when that happens, more people will likely prefer renting to buying.
Luxury Condos near Yorkville, Toronto Are Still Available
The talk about the luxury real estate market getting tight with fewer units and houses available is true. The Davies is your opportunity to own a luxury condo in Toronto’s upscale and trendy Yorkville area. Unlike high rises with long corridors and hundreds of units, The Davies is a mid-rise with just nine floors. This has allowed the building’s architects and designers to treat each home with special care. At the same time, it affords the condominium’s residents a privacy and intimacy they will appreciate. The downtown area has myriad shopping complexes, sidewalk cafes, chic restaurants, art galleries and local schools, and it is walking distance from the TTC subway. The vibrancy of the downtown core blends nicely with The Davies location that overlooks the lush green Robertson Davies Park at Avenue Rd. to afford you calm and respite.
Make that luxury condo yours today! Contact The Davies at 647-360-9588 to schedule an appointment or register online for more information. Check out our new luxury condos in downtown Toronto and consult our team to learn more about your options.