A brief insight into the luxury property market in Toronto from Christie’s International Real Estate affiliate, Chris Kapches, President of Chestnut Park Real Estate.
- How is the luxury market performing?
“The luxury market in Toronto is performing well. The fall of the Canadian dollar versus other global currencies continues to create a value proposition that international buyers are recognizing. Days on the market have fallen from 31 last year to 26.
In September, Toronto posted 32 sales in excess of $3 million, which is up from 25 the year prior. Most of the transactions at this price point sold over asking price and with multiple offers.”
- Who is buying and what are they buying?
“Fuelling these sales is a keen interest from Chinese buyers and an appreciation of hard assets, such as art and real estate, as a reliable investment option over the long term, especially when markets are volatile, as they have been in China. These buyers however, are not strictly investors but rather are moving their families and living here, drawn by top schools, the clean air, and sense of safety. We see Americans taking advantage of the currency exchange, as well, especially in our recreational market of Muskoka, located two hours from Toronto. Recently, an American buyer purchased an island here for $10.5 million.”
- Current price levels
“In October, for the fourth month in a row, the average price of a freehold detached home in Toronto was $1 million, which is a historic benchmark. I would say, however, that $3 million and up defines the luxury market in this category. For condos, I would put the luxury price point at $2 million. This is an attractive alternative to freehold in that the entry point is more accessible and while the demand is high, with multiple offers on most transactions, the city’s inventory is growing to satisfy that demand.”