Recent media reports show that Toronto luxury sales dropped significantly in the first quarter of 2018 over the same period last year. What these reports often fail to mention is that 2017 was an anomaly, and that this statement covers both low- and high-rise sales. It is true that all sales peaked just before the Fair Housing Plan and 15% foreign buyers tax were implemented. Interestingly, luxury condominium sales have remained strong throughout.
There is also still robust demand for luxury properties in the GTA. They are few and far between, so sales are picking up again. We are also seeing luxury buildings popping up in wonderful locations. Many purchasers are baby boomers who are leaving their large-scale, low-rise homes and right-sizing their accommodations. They are ready for a little pampering. They want a carefree lifestyle while enjoying freedom from outdoor chores, so condos are the perfect choice. The trend is toward boutique residences that are intimate in scale. Buyers also tend to want to stay in the general neighbourhoods they know and love – the places where they raised their families. These right-sizers want to travel, and again, condos are the logical choice. I have even known a group of friends to purchase suites in the same condominium in order to stay close to each other. It’s a neighbourhood love-fest.
There will always be a segment of the public who want and can afford the most upscale condominium suites and penthouses. These choosy buyers want more convenience, less space and the ability to entertain and relax in stunning surroundings with incredible views. I have traveled the world, and as far as I am concerned, Toronto has the most exciting condominium market anywhere.
Remember that real estate is a cyclical business. We may weather many ups and downs in the economy, but we always do well in the long run, and luxury condos stand the test of time.