Toronto’s Luxury Neighbourhoods Have Dropped in Value by Up to 30% [REPORT]

Toronto's Luxury Neighbourhoods Have Dropped In Value By Up To 30% [REPORT]
After years of growth, Toronto's luxury neighbourhoods suffered a setback in the past 12 months.

Rental values have also plunged Nearby 'non-luxury' neighbourhoods have increased in value Why the Drop?

Much of what's happening in the luxury market can be easily understood as a shift in supply and demand.

Ca with investor clients in hard-hit luxury neighbourhoods.

Some of Massoudi's clients have been forced to sell, since virtual learning means foreign students can attend Canadian schools from abroad. "I have investor clients who were once so proud to own a property in a luxury neighbourhood. But they had no idea a pandemic like this was going to hit and drive immigration out of the city. So now some of them have sold. For those who didn't, they're renting these places out for very cheap. That's why we're seeing such low rents in some luxury areas," adds Massoudi.

"Buyers will often prioritize value over luxury when in a recessionary environment. Even those who have the means to purchase high-end properties are likely to hold off. Sometimes they worry that luxury might become devalued, resulting in a wait-and-see approach," says Van Rhijn.

All three neighbourhoods have a high number of loft residences, which could also explain their soaring values.