After two years of uncertainty, Canada’s real estate market, which was once characterized by decelerating sales and pricing, is finally getting back on track this fall. According to business experts, real estate prices in Toronto jumped 5.2 percent to $805,500 in September from a year earlier, only about US$10,000 below their peak two years ago.
While there has been a steady incline of transactions on the homebuying front, sales in the luxury real estate market are soaring. The reason could be -in part- fueled by an increase in international buyers, permanent residents, and investors ready to make the move to a luxury lifestyle in some of Canada’s largest cities, including Toronto.
For example, a new skyscraper in Yorkville, one of Toronto’s most sought-out neighborhoods, features high-end amenities which include marble countertops, an infinity pool, and a piano lounge. Units here can range upwards to nearly $2 million-plus parking.
Broker Dawn Borg described the uptick in sales as a whirlwind.
“They’re selling out like crazy,” she said after working tirelessly on a Saturday trying to secure units for her buyers. “We had to go back Sunday and just wait for a new allocation to come out, and we still didn’t 100 percent get what we wanted.”
It isn’t uncommon for luxury condos to be customized with amenities similar to the ones found in the Yorkville property. However, many of today’s high-end buildings are outshining one another with services and features that rival upscale hotels … and residents are willing to pay a premium for it.
To meet with these demands, Toronto developers like Sam Mizrahi, are focusing their efforts on constructing buildings with leading-edge features that will attract buyers to the closing table.
Sam Mizrahi, who oversees luxury real estate firm Mizrahi Developments, is motivated by the details in a property’s craftsmanship.
“When I started building custom homes and, later, customized condominium projects, I was motivated by two broad points: one, building residences that can be truly customized to meet the needs of owners and building residences that owners would be proud to call home,” he said.
With Toronto’s luxury home market regaining its momentum, demand for a luxury property is likely to remain strong. To keep up with demand in a continually booming market, it will be interesting to see how developers will deliver in the coming year and provide the lifestyle Torontonians are looking for.