The Greater Toronto Area’s luxury real estate market is readying for an active spring, with consumer confidence and sales activity projected to surpass 2018 levels, according to new data compiled by Sotheby’s International Canada.
Forecasters predict the median price of a luxury home in the GTA will increase by 3.2 percent year-over-year to an excess of $3.5 million, while the median price of a luxury condominium will increase 5.4 percent to over $2 million by January 2020.
Out of Canada’s five largest cities, Toronto’s luxury condo market saw the highest price appreciation over twelve-month period.
“Toronto’s luxury home market has regained its momentum and we are expecting a more active spring market than last year with the exception of a few quiet pockets,” said Davis. “Generally speaking, demand for luxury property is stronger in the city of Toronto compared to its surrounding areas,” explains Elli Davis, real estate sales representative.
Several key factors have led to the increase, including a rise in population in Canada’s largest metropolitan areas, with immigrants and permanent residents contributing the most significantly to the increase.
In addition, the Ontario government’s introduction of the Fair Housing Plan Luxury has now been absorbed by the luxury property market, which was designed as a comprehensive package of measures to help more people find affordable homes, increase supply, protect buyers and renters and bring stability to the real estate market.
To answer demand in a continually booming market, developers are focusing their efforts on high-end condo projects that deliver the lifestyle Torontonians are looking for.
On the corner of Yonge and Bloor Streets in downtown Toronto, real estate executive Sam Mizrahi and his team at Mizrahi Developments are developing the city’s first supertall skyscraper called The One – a billion dollar building that will have 416 luxury residential suites ranging from 650 to 9,000 square feet and will feature over 175,000 square feet of commercial and retail space.
Meanwhile, Lanterra Developments is in the process of building a high-end apartment building at 50 Scollard St. in Toronto’s Yorkville neighborhood. The building proposes 64 high-end units in a 41-story building.
Demand is also projected to raise for the $1 million-plus attached home segment in spring 2019, as sales volume experienced significant gains early in the year.
A demographic shift of the Baby Boomer generation is also causing an uptick in the appeal for luxury condos as they begin downsizing from large, single-family homes to more manageable yet upscale lifestyles.