You may want to consider a career in residential commercial real estate; the demand for luxury penthouses and mega-mansions in Toronto may be higher than you thought.
A recent report by Christie’s International Real Estate (owned by auction house Christie’s) ranks Toronto as the world’s hottest luxury real estate market.
The report shows that US$1 million is the new benchmark for prime properties (and is also the minimum needed for a detached house of any sort in T.O.).
While Toronto ranked 10 in the report’s luxury index overall, it was the only top city to see a 37 per cent increase in luxury home sales in 2014, compared to just four per cent in 2013. At the same time, the sale of luxury homes has slowed down nine of the other world’s top property markets.
Growth showed signs of stabilizing in cities like Paris, New York, and Sydney.
Not surprisingly, the low supply of home in Toronto has pushed prices to $1-$2 million for relatively modest-sized houses in the city. If you’re looking for a large home in one of the most desirable neighbourhoods, you can expect to dish out $2-4 million (or, you know, $28 million if you want to get really unique). The shortage in homes has also pushed the prices of luxury condos above $1 million in 2014.
Don’t worry, we just threw up in our mouths too.
According to the report, the demand for luxury real estate is the result of wealthy people – with cash to stash – who are interested in alternative investments like art and ‘collectible’ real estate.
Speaking of real estate, today – May 1 – is a lucky day for home sellers. Data from the past five years reveals that May is the most popular month in real estate, and that buyers tend to dish out the most dough for a home during the month.
And the cycle continues…