A luxury Yorkville condo just sold at a $450,000 loss, as the condo crash hits the high-end market

Such big losses have become increasingly common in Toronto, particularly for people who bought condos near the market peak in early 2022 and sold during the current downturn.

The luxury market has been much more resilient against this trend, as wealthy buyers typically aren’t under as much pressure to act fast and supply for extra-large homes is still limited, real estate experts say. But luxury condos haven’t gone totally unscathed, they add, because buyers in this market still have plenty of options — especially for smaller units — and they are expecting a deal.

Toronto’s luxury market “doesn’t move in lockstep with the broader real estate market,” explained Heaps Estrin Real Estate Team broker Stephanie Newlands.

“Luxury buyers are generally less constrained or impacted by borrowing costs,” she said. “But they’re still certainly influenced by consumer confidence, global uncertainty, and all the perceptions of value.”

‘Pied-à-terre’ properties see lower demand

Chestnut Park sales representative Victoria Boscariol, the listing agent for the unit at 200 Cumberland St., declined to comment on the specifics of the sale, but said the sellers’ “situations had changed,” and “it was bad timing for them.”

The very large one-bedroom unit is perfect as a pied-à-terre, Boscariol said, referring to a smaller property that people buy as a second home for when they are in town.

“People buy this property, and then they live down south in the winter,” she said. ”(But) people aren’t going to Florida right now, so that maybe cut off the demand a little bit.”

Christian Vermast, executive vice-president of sales at Sotheby’s International Realty Canada, said return-to-office mandates likely also stifled demand.

Many people who bought luxury one-bedroom condos were “living either in King City or on the outskirts of Toronto and would just come to Toronto for board meetings, or came to Toronto, maybe, a few days a month.”

But with the return to office, many of these buyers have pivoted to two-bedroom units, which have become more affordable over the last 18 months and offer the versatility of having a guest bedroom or home office, Vermast said.

Extra-large homes more ‘resilient’

Experts agreed there’s no one-size-fits-all when it comes to the luxury market, but a few variables stand out. 

“A $1.5-million condo versus a $5-million home or a $15-million estate — they all have different buyer pools, and on both sides, everyone has different motivations, so treating them as one category can obscure what’s truly happening in the market,” Heaps Estrin’s Newlands said.

The condo market, luxury or not, is affected by the “incredible amount of inventory” putting downward pressure on prices, she said.

“Buyers have a lot of options to select from,” Newlands added. “They’re not absent right now, but their expectations are high, and negotiation desirability is also high — more than ever, and certainly more than I’ve seen in 17 years.”

While the price of the Yorkville condo dropped 24 per cent between the sales in December 2021 and July 2026, Toronto’s condo market fell about eight per cent in that time, Toronto Regional Real Estate Board data shows. (Between the market peak in February 2022 and July 2026, however, Toronto condo prices fell 18 per cent.)

Sotheby’s Vermast noted the one-bedroom sector has been “more severely” impacted by the market downturn, while the value of larger units in prime locations is more protected by their rarity.

“Condos that are 2,000 square feet and larger in locations with walkability to amenities have been more resilient,” he said, along with houses in “quintessential family neighbourhoods” like Rosedale, Summerhill and Leaside.

Boscariol, for her part, said luxury condo prices have “definitely suffered,” but “it just gets more nuanced as you get into the higher end.”

A penthouse condo with more than 5,000 square feet at 181 Davenport Rd. sold in April for about $15.5 million — which she said is the highest resale price recorded in Yorkville ever.

In June, another 5,000-square-foot condo at the Four Seasons in Yorkville sold for $10.25 million, she added, noting resales at that price don’t happen “too often” in the neighbourhood.

Boscariol said this is the “weirdest” market she’s seen, besides the pandemic years, in her more than 30 years in the business, so it’s hard to “brush” the luxury and regular markets “with the same stroke.” 

“Wealthy people make decisions a little bit differently than the average person, I think, because they have more disposable income, and if it’s the right fit for them, then they’ll go for it,” she said.

“But they’re not under the gun as much to do something,” she added. “If anything, maybe that’s why we’re seeing those two big sales right now — because they’re taking advantage of a lower market.”