Manhattan North

People have recently been asking me why the Toronto condo market is cooking so strong these days and despite the frequency of questions, my answer has been the same ever since I got into the business back in the 1980’s. There simply is not enough product to go around.

This answer usually stumps people because they note the numerous high rises going up around them. Even the most basic understanding of economics (supply / demand) tells them that at some point the market has got to get soft due to over supply. The real question is: "is there ever such a thing when it comes to residential condos"?

Conventional economic approaches could certainly suggest that with a fixed market, any product can quickly reach a saturation point at which the prices will fall due to continued production which is exceeding the demand. However, with Toronto residential condos you have got to realize that the demand is almost limitless!

The majority of my Buyers/Clients are from international destinations, thus my view on the market proves somewhat unique. Local Realtors dealing with local purchasers certainly will hold a different perspective on such issues as supply/demand ratios and depending on the personal persuasion of any given individual Realtor one might expect as radical of a perspective in any given which way. You will find that the perspective that I share with you here at simplycondos.com is that of the "Buyer’s Market" moreso than my personal view (although my personal view is pretty much shaped by what these buyers feed back to me every day).

I hear from many local Toronto residents frequently asking me about the "impending bubble" with respect to local condos. Many seem shocked to realize that prices are passing $400 per square foot while an almost limitless number of residences continue to pour onto the market. These are two perspectives that, quite frankly, I don’t hear from international buyers. First, although $400 per square foot (I can still find you decent condos in the $300 if you don’t mind older buildings) may seem excessive to Canadians, I would remind you that Canadian $300 - $400 when cashing in American currency (and enjoying American retirement income) is shockingly less than $1,000 U.S. for prime Manhattan properties!

The bottom line is that Toronto properties are undervalued from a global perspective and the only thing that is keeping prices in check is the number of competing properties being offered. Skyscrapers are today’s trend in luxury condominiums. The the past few months the City of Toronto has granted a number of skyscraper residential developments located right in and/or adjacent to Toronto’s Financial District.

Spire, another exciting downtown high-rise by Context Developments reaches 45 storeys of floor to ceiling glass residences just east of the Financial District on the Northwest corner of Adelaide and Church. Not usually drawn to downtown east (for no real reason as there are some impressive condos and lofts on Toronto’s eastside), this site offers the best of both worlds. East Toronto is old Toronto and some of the more treasured architectural buildings in the city are all found within a stone’s throw of Spire. It has it’s own park on the north side offering unique lower floor views but, realizing the low heights of neighbourhood buildings, Spire will offer impressive views from pretty well all sides.

CityPlace, always innovating and really captivating the first time buyer market, Cityplace is launching what is being heralded as the "tallest building in Canada" with it’s new Signature Tower at Cityplace. I haven’t as yet received any material on this exciting new glass tower other than the rendering appearing on the homepage. Cityplace is certainly much more than a cluster of residential condominiums. It is an entire "city within a city" offering quality residential alternatives to many first time buyers whose price point is still under $150,000. Resale alternatives in this price range end up with scary results but with granite countertops, floor-to-ceiling windows, full appliance packages, 24 hour concierge and good amenities all the while keeping maintenance fees low, Cityplace is quickly becoming a lifestyle alternative all of it’s own. Investors, contact me right away (before the launch)!

Minto Midtown is another site that will launch in May of this year. The demand for Eglinton and Yonge area condos has been extreme for a long time but in the past when developers tried to move into the area the local home owner’s associations opposed high-rise construction and continually thwarted efforts to develop the area. Minto, a major and highly respected developer of quality condominium residences dating back decades (not to mention hundreds of thousands of detached single family housing throughout North America) successfully navigated their way through the opposition and will soon introduce two towers offering condo owners the opportunity to enjoy this high demand neighbourhood. Register today to attend a prelaunch preview of this excellent site.

I would be remiss if I did not comment on the recent relaunch of the Ritz Carlton on Bay at Adelaide by Donald Trump. The Don was invited in as a partner of a previous attempt gone astray but not even his name recognition being associated with the development was enough to save it. I believe that Donald Trump is the only player with the vision, resources and nerve to make this standard of condo a success in Canada. It won’t be an easy challenge for him but we all know Donald thrives on challenge. At $850 per square foot you know this investment is for the astute investor thoroughly versed in higher risk investment alternatives (with higher risk also comes higher return). I’d bet on Donald.

Toronto is not a city of exclusivity or restrictions thus its residential communities seldom are beyond the means of everyone. Each development has small, medium and large size suites. Penthouses are my specialty but I still help lots of first time purchasers find their first homes.

If you have been reading my articles you already know that I’m a big believer in purchasing presale condos. Both end users and investors stand to enjoy the optimum return on their investment by posturing themselves into a position whereby they purchase from plans and take possession down the road. We have developed strategies from a broad range of buyers even those looking for immediate occupancy.

The science rests in developing a plan and being able to read floorplans, floorplates and site plans (actually have me read them with you) and be able to select the right plan for you. This usually requires visiting the site where the development is to be built and take the plans and juxtapose them into the existing environment. Certainly knowledge of any developer’s history is critical as well. We are inviting all owners of condos to send in your comments on your developer. There presently is no central place where people can go to check out a developer and when you realize that you are spending hundreds of thousands of dollars no matter what it is you are buying one would think that there would be a central location where credentials can be checked. We are presently building this resource into simplycondos.com and will depend on all buyers participating with us to make this meaningful information available to our visitors, clients and viewers.

So, for those of you who fear a softening of prices in condos I say, visit Manhattan for a few days and see where prices are for downtown luxury condos. Understand that most retiring Americans can afford that! They are becoming my clients and buying here in Toronto because they simply cannot afford Manhattan and they can afford Toronto.

Toronto has all of the theatre, professional sports, museums, dining, shopping and other entertainment that Manhattan has to offer and at $0.60 dollars our already affordable condo prices shrink to downright attractive. When I started in digital condo marketing back in ‘89 I was targeting Hong Kong buyers and today they come from all over the world with a surprising and rapidly growing market within a days drive in upstate New York. I recently purchased the penthouse at Elev’n 21 for a couple from Austin Texas who will retire here in Toronto on American income pensions.

Do I think that prices are about to soften, my only rational answer is "possibly" (everything is always due for an adjustment). Do I think that they are about to fall? "No". Do I think that it is a good time to buy? "Yes" but always be sure that when you are buying you have all the facts, all the answers, and all the skill that you can get onto your team. This weekends National Post shows that condos and houses are still selling "ahead of asking with multiple bids".

When you work with me, I’ll send you all of the detailed information to insure you can make your own "informed decisions" and guarantee you the negotiating skill to insure you the best price, terms and conditions. Be sure to NEVER VISIT A CONDO SALES SITE WITHOUT HAVING ME THERE WITH YOU. Register today.