From mid-March to early September, prices for Toronto luxury homes have increased over five percent to $3,187,500 from the same period a year ago.
During the same stretch, the median luxury condo price declined 1.6 percent to $1,870,000.
The trend seen in the luxury real estate data, published this week to Royal LePage, is similar to the one playing out in the broader market, with single-family homes seeing a tremendous rise in both buyer interest and price growth while the condo segment, particularly units located in Toronto’s core, have seen more muted activity.
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The major difference is that, according to Toronto Regional Real Estate Board (TRREB) figures from August, average condo prices are still moving upward on an annual basis. Royal LePage’s pricing data suggests that’s not the case when it comes to the upper end of the market.
“The luxury condominium market has faced some challenges over the recent months,” said Cailey Heaps of Royal LePage’s Heaps Estrin Team.
“The new rules with respect to short-term rentals, higher inventory and the increased risk that comes with communal spaces or common areas have meant that condos did not perform as well as the freehold market. However, buyers will find more selection compared to the inventory of luxury houses,” she continued.
It’s not just luxury condos in Toronto that have suffered from sluggish price growth or outright declines during the pandemic. Montreal has seen the median price for its luxury condos decline by 1.5 percent to $1,254,000 during the period studied by Royal Lepage. At the national level, luxury condo prices remained flat during the March to early September period.
“[S]ome owners have been discouraged by the restrictions on access to shared amenities, such as party rooms and pools, and higher density living in general,” Royal LePage President Phil Soper said in a media release.
“As a result, the [Canadian] condo segment is more balanced, with people seeking large condos roughly equal to those planning to escape elegant downtown tower living for the ‘burbs,” he added.