Category Archives: Move Up Buyers
The single family home outpaces the condo in the value building race
Carolyn Ireland – The Globe and Mail
As uncertainty continues to overshadow Toronto real estate, people from industry insiders to idle observers are speculating about the extent to which the condo and the single-family home portions of the market have split in two.
Real estate agent Geoffrey Grace of ReMax Hallmark Realty Ltd. offers up a fluky tale of three sales that provide a good snapshot. The numbers, he believes, illustrate well the divergence in value in the broader market.
“It just seems that people are betting on the single-family house.”
Mr. Grace points to the action in a former mattress factory that has been converted to a cool loft building near Bloor Street and Lansdowne Avenue. The second setting is Boston Avenue in Leslieville. The story starts in 2009, when Mr. Grace helped a client sell his loft and buy a detached house in Leslieville for $10,000 more than the selling price of the loft.
Now fast forward to October, 2012, and the purchaser of the loft decides to sell. She calls Mr. Grace because he knows the unit. Coincidentally, the owner of the house in Leslieville decides to sell because he’s moving to Hamilton and he too calls Mr. Grace. The loft sells for $399,900. The house on Boston sells for $440,000.
So, in the same period, the loft increases in value by 19.4% while the house swells in value by 27.5%.
“The single detached home in Toronto is the prize that everyone is after,” says Mr. Grace.
Still, Mr. Grace did not set an offer date for the house because he knew the market had slowed.
The house was listed with an asking price of $449,900 and sold for $440,000 after eight days.
Mr. Grace says that supply and demand is one factor: Many more condos are going up than single family houses. But also, condo prices have reached a level that doesn’t make sense to a lot of buyers.
Compared with the house in Leslieville, a nearby loft with the same square footage would cost $700,000, says Mr. Grace.
“It seems people believe the freehold house market will keep going strong.”
Even freehold houses are taking longer to sell, he notes. Buyers hold more power in this market.
Comment: Buyers hold no power when it comes to detached houses. They used to take mere hours to sell, now it is a week. And we are calling this a long time? We are saying buyers hold power because there isn’t a bidding war on 3 of 4 houses? Think about that for a minute…
“If the house is over-priced, they’re still letting the sellers sit and sweat. But if you have a reasonable price, people will buy.”
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Contact the Jeffrey Team for more information – 416-388-1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
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Stellar sellers in GTA condo market
Lisa Van de Ven – National Post
Whether you’re in the market for a big-name amenity-rich condo-hotel, or an intimate boutique building with all of the finest features, Toronto’s luxury developers have something for sale. Here’s what’s on offer in the Greater Toronto Area’s luxury condominium market.
The Residences at the Ritz-Carlton, Toronto
Delayed gratification isn’t your thing? Then The Residences at the Ritz-Carlton, Toronto may be. With the condo-hotel built and occupied, and the amenities up and functioning, there’s not much you’ll have to wait for. “Anyone walking in to buy today gets the full ambience of luxury,” says Barbara Lawlor. And the building by Graywood Developments, Cadillac Fairview and Ritz-Carlton comes with all of the fixings you’d expect from a five-star hotel: There’s 24-hour concierge service, a doorman, valet parking and a spa, to name a few. “Residents can enjoy The Ritz’s legendary service in their home,” says the president of Baker Real Estate, the site’s exclusive broker. Remaining suites range from 1,512 to 6,020 square feet and from $2.1-million to $9.65-million.
One Bloor
If a building’s success starts with its location, One Bloor went in with winning odds. In Toronto, it’s hard to get better than the junction of Yonge and Bloor streets, on two subway lines, close to shopping and a jaunt from Yorkville. Developer Great Gulf created a building worthy of the site. The 75-storey Hariri Pontarini-designed glass-clad tower is now under construction. “It’s beautifully curvaceous,” says Alan Vihant, Great Gulf’s senior vice-president of high-rise. “It has these great lines, great curves, a very sensuous form.” Remaining suites range from 530 to 1,727 square feet and from $534,990 to $1,831,990.
Bisha Hotel & Residences
What exactly is “affordable luxury?” For one, it’s what Lifetime Developments and INK Entertainment were striving for at Bisha Hotel & Residences. And according to Mel Pearl, that meant smaller units and more emphasis on the lifestyle outside the suites’ walls. “We wanted people to be engaged in living beyond their condo,” says the Lifetime principal. “A great place is when the bar and the restaurant is busy.” And the condo-hotel will have a lot of public amenities to keep crowded, including a 24-hour café, a bar and lounge, a casual dining restaurant and a rooftop restaurant. Suites range from 379 to 699 square feet and from $303,900 to $532,900.
Living Shangri-La Toronto
Living Shangri-La may not have the same brand recognition in Canada as it has in Asia, but the Toronto location at University and Adelaide has certainly seen its share of success. The 66-storey condo-hotel is now 85% sold out, with occupancy underway. Buyers have come from around the world. “There’s no specific buyer group – we’ve had all types of people,” says Michael Braun, marketing manager for Westbank Corp., which developed the site with Peterson Group. “There are single people and older couples, as well some who bought a suite for their kids or someone in their family attending university in Toronto.” Suites range from 891 to 4,431 square feet and from $993,600 to $9,322,500.
133 Hazelton Residences
“It’s not really downsizing,” says Sam Mizrahi of the lifestyle he’s offering in the boutique project 133 Hazelton Residences. While many of the site’s buyers are coming from low-rise homes, they’re moving into suites that are nearly 3,000 square feet. “They’re looking at this as the next chapter in their life,” says the president and CEO of Mizrahi Developments. With only 35 units in total, the building, which started construction in July, promises an intimate environment and prime location – in fact, its Yorkville address is a big part of its draw. Remaining suites range from 1,600 to 2,400 square feet and from $1.8-million to $3.2-million.
The Perry
Bigger is not necessarily better. With just 45 units, The Perry may not have the heft of some of Toronto’s other luxury sites, but that’s exactly the point. “We’re truly designing a boutique building in terms of scale,” says Maryam Mansouri. Buyers at the intimate project will still be knee-deep in luxury, though, with a one-year membership to the concierge service Quintessentially in addition to the 24-hour onsite concierge, and a prime Avenue and Davenport location. “It has the essence of peace and tranquility, being in the Annex, yet it’s steps from Ramsden Park, Yorkville, Bloor and top-notch restaurants and shopping,” says the vice-president of site developer Mansouri Living. Suites range from 540 to 1,458 square feet and from $344,990 to more than $3-million.
Trump International Hotel & Tower, Toronto
An international brand doesn’t always mean international buyers, but for the Trump International Hotel & Tower, Toronto that’s exactly the case. About 60% of the condominium-hotel’s buyers are from outside of Canada, which still leaves enough Canadian residents to stock up on maple syrup. And with the building well into construction, those purchasers will be able to start moving in later this year, enjoying services such as onsite catering and the use of two chauffeured S-class Mercedes. “The hotel below and the five-star services are great attributes for residents and really add to their lifestyle of convenience,” says the site’s director of marketing, Howard Tikka. Remaining suites range from 1,310 to 3,273 square feet and from $2.3-million to $6.6-million.
Four Seasons Private Residences Toronto
Think of “luxury” and “Toronto” and there are a few condominium projects that immediately come to mind. For most, the Four Seasons Private Residences Toronto is on the top of that list. The condominium-hotel, first announced in July 2005, is now coming to completion. The hotel itself opens Oct. 5, while condo occupancy has been underway since September. “I know some of the other mixed-use condos have attracted more of an international buyer, but for us it’s been predominantly Canadian – a lot of Torontonians,” says Mimi Ng, vice-president of marketing with Menkes Developments, partner on the project with Lifetime Developments and Alcion Ventures. Remaining suites range from 1,200 to 2,000 square feet and from $1.8-million to $2.7-million.
77 Charles West
Why did developer Aspen Ridge Homes ask architect Yann Weymouth – one of the brains behind the iconic glass pyramid at the Louvre in Paris – to design its luxury building, 77 Charles West? “We wanted out-of-the-box thinking, and something really prominent,” explains marketing director Christene DeGasperis. The gamble paid off. With construction underway, fewer than 10 suites are left of the 52 total. And when occupancies start early next year, buyers will be able to add some design flair to their suite interiors, too. “We’re offering the services of Mike Niven Interior Design to help customize each suite,” Ms. DeGasperis says. Units start from approximately 1,500 square feet and $1,599,990.
The Britt
What was once the Sutton Place Hotel will now be The Britt, a condominium building that’s the newest project by Lanterra Developments. “It’s a project that has a lot of history to it,” says president and CEO Barry Fenton. “When you mention Sutton Place, I bet nine out of 10 people have been through or driven by, so the location is superb.” The former hotspot is being revitalized and expanded, then restyled by Alessandro Munge of Munge Leung, with inspiration straight from Britain’s boutique hotels. Suites range from 334 to 1,300 square feet and from the $300,000s to $1.2-million.
277 Davenport
Toronto’s condo market may be trending towards smaller suites, but Burnac Enterprises never got that memo: Units at Burnac’s 277 Davenport range from large to extra-large. And with just 10 of them spread over seven storeys, you can’t expect to stay a stranger long in this compact condo. “You’re going to know your neighbours,” says president Ted Burnett. Designed by Hariri Pontarini Architects, the building, just west of Avenue Road, is a contemporary mix of glass, stone and bronze. “It’s a unique New York-style building,” he says. Suites range from 1,750 to over 3,600 square feet and from $1,679,000 to $3,395,000.
181 Davenport
Can Mizrahi Developments hit the jackpot twice? They’re betting on it, with the recent release of 181 Davenport, a condominium building adjacent to their 133 Hazelton Residences project. “That block really commanded another building that was complementary to 133 Hazelton,” says president and CEO Sam Mizrahi. With 90 units, the new endeavour is slightly larger than the developer’s first luxury-living foray; buyers can also combine and customize suites. “It’s a European-style building, and offers a similar lifestyle as 133,” the developer adds. Suites range from just under 1,000 to 7,000 square feet and from $500,000 to $7-million.
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Contact the Jeffrey Team for more information – 416-388-1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
—————————————————————————————————–
Incoming search terms
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Retuning to a swiftly changing market
Carolyn Ireland – The Globe and Mail
There’s a stalemate in Toronto’s condo market.
Inventory is up, sales are down and prices are holding firm. Buyers, it seems, are not in a rush to close a deal because they think prices may weaken. They’re still looking, but they’re taking their time.
Comment: Prices are not only holding, they are up 8% in Toronto over last year.
“There’s not that sense of urgency,” says Christopher Bibby, an agent with Sutton Group Associates Realty Inc.
Comment: There never really was in the condo market, at least not compared to houses.
Sellers who aren’t in financial distress, meanwhile, don’t feel any imperative to lower their asking price, says Mr. Bibby, who recently had a couple of lowball offers lobbed at a condo for sale near the Art Gallery of Ontario. His client turned them away.
“I’m not going to accept your offer for $30,000 or $40,000 under asking,” was the client’s response, according to Mr. Bibby.
Comment: Been there, done that. We waited and got $20,000 more, which is what we wanted. Just took longer.
Meanwhile, units in buildings with little turnover that would have found a buyer in a day or two last year are taking two or three weeks to sell.
Comment: Oh my gosh, compared to the usual 4 weeks it used to be. Sales are so slow now… only a week faster than usual.
“We’re just starting to see inventory sitting in these highly desirable buildings.”
Mr. Bibby specializes in condos and he’s one of the busiest agents in the city. One of the challenges for him now is to make sure that sellers are realistic. He recently walked away from a listing because the owner wanted him to guarantee a quick sale.
“You have to keep the expectations of your vendors realistic and tell them exactly what’s going on.”
Comment: And that can be hard when the market is changing almost daily.
In another recent case, his clients were a young couple thinking about putting in a bid on a detached house in High Park. But offers were being reviewed that night and there was almost no time to have a home inspection done and prepare a bid. Mr. Bibby also cautioned them that their condo might take longer to sell than it would have a few months ago.
He didn’t want them to get caught in a squeeze.
The house, which had an asking price of $699,900, sold for $865,000.
Comment: And as a good agent, he kept them from getting caught up in something that could have ended badly for his clients.
And that demonstrates another phenomenon in the current Toronto market: detached, single-family houses are still attracting more buyers than sellers and continue to sell with multiple offers.
“Everything seems to be quite normal in freehold,” he says.
But Mr. Bibby also points out that prices for condos have soared so high that some people are looking at single-family house as a better deal.
Comment: Which is why “family-friendly” 3-bedroom condos downtown will never fly. Why pay $700-800k for that when you could have a nice semi in Riverdale for less? Or for a bit more, that lovely house in High Park from above? Without the condo fees, with a backyard, a basement… maybe even parking.
One couple looking to trade up from one condo to another discovered that they could actually buy a three-bedroom house in East York for about the same amount as the 900-square-foot condo they were looking at downtown.
Mr. Bibby wonders how the condo market will fare with so many new buildings under construction. But for now, he says, the buyers are still interested. They’re just not in a rush.
Comment: Same as we have wondered for years. Seems to be just fine.
Sellers, at the same time, remain sanguine.
“The minute you drop the price, it can trigger a firesale,” he says. “That’s not happening.”
Comment: Nope, the minute the price drops, everyone who was waiting for lower prices comes charging out of the woods and prices are bid back higher than they were before. Mark my words.
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Contact the Jeffrey Team for more information – 416-388-1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
—————————————————————————————————–
Incoming search terms
Related posts:
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