Toronto’s luxury real estate market continued to heat up in 2019 and it’s showing no signs of slowing down. So much so, luxury condo prices are forecast to rise 6% in 2020, according to a new report from Royal LePage.
The report, released Tuesday, revealed condo sales are leading Toronto’s luxury real estate market, which is expected to continue making gains this year due to a limited supply of listings and the return of foreign buyers.
“Luxury condominiums in Toronto saw significant price appreciation as the region’s international reputation continues to grow,” said Kevin Somers, Chief Operating Officer, Royal LePage Real Estate Services Ltd. Somers added that the demand has also remained “healthy” for luxury homes in Toronto.
Luxury condo prices climbed 7% in the GTA in the 12 months ending January 31, to a median price of $2.4 million. By comparison, high-end houses, rose just 1.2% to $3.6 million during the same period.
Steven Green, a sales representative with Royal LePage Partners Realty says those looking to purchase a luxury home are now facing the same low inventory scenario that is currently challenging the overall residential market. As a result, the price of luxury homes continues to drive up.
“Some of the city’s most desirable pockets have a very low inventory of listings, which is unfortunate for sellers who want to move up in the same neighbourhood,” said Green.
Green added that the demand for condos is a reflection of the buyers that that type of housing attracts. For example, Green says boomers and young executives looking for low maintenance, luxury properties are competing against investors and foreign buyers also seeking a low maintenance property to use as a secondary residence.
“However, all luxury listings, whether detached or condominium, mid- to downtown including central, east and west, are getting a lot of attention.”
Furthermore, Green predicts that over the next year luxury house prices are expected to increase by 2.5% to $3,721,000 while luxury condominiums are forecast to increase 6% to $2,547,000.
You can find the full report here.