The market for luxury condo sales in Downtown Toronto is in a unique and unusual situation. Over the past few months, there has been lots of conversation about market changes in Toronto. Many buyers see this as a chance to see if prices will decline whereas sellers who are not in any urgency to sell are waiting to see if the markets will continue to rise before listing their properties. This has caused there to be less inventory in the luxury condo market than at almost any point in the past year, and increasing competition amongst buyers is pushing pricing higher.
In October, there were a total of 49 properties that sold for more than $1,000,000 throughout the downtown core. A downward trend, due to lack of inventory, from the 82 properties sold in the same category in March 2017. In October one million dollar plus condos represented nearly 8% of all condos sales in downtown Toronto which is a significant increase from October 2016 when million dollar properties represented just 5.5% of sales.
As the average property prices increase across the market, we are seeing more properties breaking into the million dollar price range. The bulk of October luxury sales were in the 1,400 – 1,800 square foot sized suites. There were surprisingly eight sales of condos under 1,000 square feet that surpassed $1,000,000. The lack of supply has affected the larger luxury suites with only three sales of suites over 2,500 square feet. The demand for these larger units continues to grow, and a lack of listings is producing a very competitive luxury marketplace.
The lack of more larger, high-end condos throughout the city seems to have gone unnoticed by many developers. Many new developments continue to launch projects full of small investor-targeted suites. A notable exception to this is The ONE by Mizrahi Developments located at 1 Bloor Street West at the intersection of Yonge and Bloor. The ONE launched sales mid-October, and we were very pleased to see the extensive selection of spacious units with one-bedrooms starting at 600 square feet and two bedrooms staring 1,000 sq.f.t and upwards to almost 2,500 square feet.
In October, luxury condo sales ($1m+) averaged $1,572,212 and sold on average in just 28 days (which includes any conditional periods). With fewer listings on the market, buyers are moving very quickly and often leading to multiple offer situations. Given that these suites have averaged a 99% sale to list price ratio there is very little room for negotiation in pricing.
The highest priced sale as reported by the Toronto Real Estate Board in October was for pre-construction condo down on the waterfront at Tridel’s new Aquavista which sold for $3,360,000. This two-storey sky penthouse offered 2,770 square feet of living space and large terraces with direct lake views. Aquavista is scheduled for completion and occupancy by summer 2018. The second highest priced sale was for a two-storey Penthouse at 1 Scott Street which sold for $3,250,000. This St Lawrence Market penthouse offered 2,200 square feet of interior space and an 1,100 square foot terrace. The combination of custom-designed interiors and outdoor space made this property unique to the building and neighbourhood.
Another significant sale in October was for a south facing unit at Exhibit Residences which sold for $2,250,000. This south-west corner suite spans 1,492 square feet and achieved over $1,500 per square foot which was the highest amount per foot recorded in October. Sales in Exhibit Residences at 200 Bloor Street West continue to be among the highest price per square foot in the city. In October the building averaged over $1,400 Per sq.ft. making it the most expensive building on Bloor Street. Exhibit Residences offers an ideal location just steps from Yorkville, breathtaking unobstructed and protected views south views over The Royal Ontario Museum (ROM).
All figures based on reported sales from the Toronto Real Estate Board.