When a Toronto condo is selling for more than $1,000 per square foot it’s enough to make headlines. So how about units priced at close to triple that?
Toronto developer Lanterra plans to launch sales at its Yorkville high-rise project 50 Scollard Condos in the $2,500-to-$2,800 per-square-foot range, a source with close knowledge of the project tells Toronto Storeys.
The 41-storey tower, located on the northeast corner of Bay and Scollard Streets just south of Davenport Road, is a boutique high-rise with 64 condos. The smallest units measure 2,500 square feet.
That would peg the starting price at 50 Scollard at around $6.25 million.
When Ben Myers, president and founder of Bullpen Consulting, which advises developers, first heard of plans to launch the project at prices of upwards of $2,500 a square foot, he says he was “a little bit shocked.”
Myers hasn’t seen a Toronto condo launched at a price point that high before.
But other high-end Yorkville condos — 36 Hazelton by Alterra and Zinc Developers and the Four Seasons Residences by Lifetime and Menkes Developments — have set a precedent for “super high-priced units,” he says.
The market expert also says there are factors to justify Lanterra’s pricing and he thinks the building will sell out.
“I think it will sell just for the fact that it’s such a unique project in a fantastic location,” Myers explains.
However, the soaring prices are not a signal that many more similarly expensive projects are on the way, he suggests.
“I think you can only really bring on one of these projects every two or three years.”
Myers finds Toronto doesn’t have the cachet of Manhattan — not yet at least. “The demand is only so deep.”
Lux projects in Manhattan draw wealthy buyers from Russia and Dubai, and Myers isn’t seeing the same activity here in Hogtown.
The city does have the benefit of being relatively affordable compared to other global cities such as London and Paris, though.
Myers anticipates most of those who end up buying units at 50 Scollard will use the property as a primary residence or pied-à-terre, with a smaller share of wealthy international buyers parking their money here.
“It’s such a niche market,” he says.
“It’s not your typical cash-flow investor that’s buying.”