Luxury condominium apartments and townhomes continue to entice affluent buyers in the Greater Toronto Area, with sales over the $3-million price point climbing in the first two months of 2018. Between January 1 and February 28, eight units changed hands, up from five during the same period one year ago.
Empty nesters and baby boomers are driving demand for larger, higher-end units, with many selling their freehold properties in Toronto’s coveted neighbourhoods and downsizing to condominium homes in close proximity to Bloor Street’s Mink Mile. The most expensive sales so far this year were apartment units in the Casa Loma and Yorkville areas, with price tags slightly above $5 million. The priciest condominium unit currently listed is in Yorkville, with an asking price of $13.9 million.
Solid demand coupled with limited supply has also placed upward pressure on condominium prices. Inventory levels have been trending downward in the downtown core in recent years. In January, the sales-to-new listings ratio for condos in the core hovered at 63 per cent — clear sellers’ market territory. Demand has also spilled over into the luxury rental market, with units in the $4,000-to-$6,000 range moving within 30 days.
Last year was a record year for condo sales over the $2-million price point, with an increase of almost 44 per cent over 2016 (161 versus 112 units). So far this year, 17 townhomes and apartments sold in excess of $2 million. Although these numbers fall just short of the 19 reported sales during the same period in 2017, there has been a notable upswing in home-buying activity in recent weeks. Buyers have started to cautiously venture into the market as supply remains tight but given the current climate, luxury condominium sales are expected to match, if not exceed, last year’s record levels by year-end.