- Lukewarm summer for luxury real estate, but numbers regain footing
- Toronto slowdown felt nationally
- Toronto’s first micro-condo development tops off
The Greater Toronto Area’s troubled housing market is making its effects felt on national sales and pricing trends as well, recent data from The Canadian Real Estate Association reveals, bringing a negative growth outlook for 2018. With Sotheby’s International Realty’s new luxury market data casting new light on the GTA’s luxury market, speculation still continues as to whether or not the GTA will continue its rapid cool, or if buyers will be enticed by more favorable conditions and the fear of new mortgage hikes to start returning to the market. All in all, the topping off at Smart House came as welcome news for the city’s troubled real estate market, with Toronto’s first-ever micro-condo bringing 256 new units to Downtown Toronto.
Lukewarm summer for luxury real estate, but numbers regain footing
As the debate on Toronto’s housing market rages on, a new report by powerhouse Sotheby’s International Realty offers insight into the Greater Toronto Area’s luxury market. Sales for homes priced at $1 million and above suffered throughout the summer months, similarly to all product categories, regardless of price range. Year-over-year sales dropped 39% for residential properties above $1 million, while the $4 million and over category fell 29% in the GTA, per the same source.
Toronto’s luxury housing segment also got a boost from the hot condo market, with year-over-year sales up 15% in the City of Toronto, and 8% in the 905. August numbers, however, showed a markedly lower sales volume across the GTA, hinting at a cooler fall season, especially compared to the overheated, unsustainable market of the first half of the year.
Toronto slowdown felt nationally
The GTA’s housing slowdown is starting to make its effects felt on national housing data as well. Home to about a quarter of Canada’s population, recent housing reforms in Ontario have slowed down sales activity on a national scale, with 2018 national sales projected at a 2.3% negative growth rate compared to 2017, according to The Canadian Real Estate Association.
Toronto’s projected stabilization to more sustainable sales activity and price growth in the luxury section is also affecting the national sale price average. With Toronto’s early 2017 buying frenzy not expected to make a comeback in 2018, the national average price is set to slide 0.6% to an average of $503,500.
Toronto’s first micro-condo development tops off
Smart House, Downtown Toronto’s first micro-condominium project, has topped out, according to Urban Toronto. Initially announced in 2013, the 256-unit tower is set for a 2018 delivery, bringing Toronto’s first micro-condominium units to market. Developed by Urban Capital in partnership with Malibu Investments, the 25-storey tower was designed by Architects Alliance, with II X IV and Aya Kitchens also involved. Units come in sizes as small as 276 square feet, with prices at the sold-out project having started at $249,900. The 256 ultra-functional units will be joined by retail space on floors 1 and 2, while the 3rd and 4th floors will give way to 16,000 square feet of Class A office space.