Luxury condo sales are soaring in Eastern Canada as many Canadian baby boomers are cashing in on their stand-alone homes and downsizing, yet upgrading, into the luxury condo market for retirement.
According to the 2018 RE/MAX Spotlight on Luxury Report, sales of condominiums in the $1-2 million range remain popular, particularly in larger urban centers. In Toronto, the priciest condo sold for $11.5 million in 2018, up from $8 million in 2017.
Christopher Alexander, Executive Vice President and Regional Director, RE/MAX INTEGRA Ontario-Atlantic Canada Region, explains, “We’re also seeing an emerging trend of Millennials entering the lower end of the luxury condo market, as they tap into their inheritance to invest in this popular property segment.”
In addition, the foreign buyers tax has impacted overseas activity, allowing more opportunities for local buyers to enter the luxury market.
Elton Ash, Executive Vice President, RE/MAX of Western Canada, says. “As a result, local buyers are driving demand for luxury condos, which is welcome news for developers in major city centres looking to build more properties.”
One such developer is Toronto’s Sam Mizrahi who says he is about bringing the best to the condo lifestyle. His philosophy is: “we don’t meet code, we exceed code.”
Sam Mizrahi, along with London-based Foster and Partners, is currently working on his milestone project, The One, situated at Yonge and Bloor in Toronto. The project will become the tallest building in Canada and, upon completion, will have 416 luxury residential units and eight floors of retail space offering 18-foot high ceilings.
Torontonians’ desire for luxury lifestyles is also translating into the rental market.
“We’re seeing that renters have higher expectations around amenities,” says Paul Baron, vice president of asset management of Minto.
To meet the new demand, Minto is constructing its new rental community at 39 Niagara featuring 501 rental units across a mix of studios, one- to three-bedroom suites and townhomes, along with luxury amenities like a swimming pool, sauna, steam room and urban garden with fire pits and barbeques.
With a vacancy rate at less than one percent, Toronto’s rental housing market is in high demand. Luxury purpose-built rental projects like 39 Niagara fulfill the void for people who are downsizing or to those professionals who work and live downtown.
