The Toronto-area ultra-luxury real estate market defied troubling economic headwinds with a whopping 200 per cent increase in sales in the first half of 2025 over the same time last year.
According to Sotheby’s International Realty Canada’s 2025 “Mid-Year State of Luxury Report,” residential sales in Canada’s largest luxury real estate market declined in the first half of 2025 as uncertainty slowed activity. But the region’s ultra-luxury real estate saw 12 sales for homes over $10 million in the first half of 2025, compared to four sales for the same period last year.
“Typically, this price range for the homes that are over $10 million takes longer to sell, as these buyers tend to be more selective,” said Dianne Usher, a managing broker at Sotheby’s International Realty Canada.
“But we have more sellers in this market and buyers had more selection and when they see what they want they go for it. It was the right mix of buyers and inventory in the first two quarters of 2025.”
Sotheby’s experts also reported an increase in ultra-luxury real estate transactions occurring “off-market” as sellers increasingly sought greater discretion and privacy in the sale of their properties.
These are typically public figures, such as politicians, athletes, entertainers, who don’t want anyone to know they were in the marketplace, Usher said.
Despite these gains, luxury residential real estate sales over $4 million for all property types saw a decline in the first half of 2025, falling 28 per cent year-over-year to 222 properties sold between Jan. 1 and June 30.
Sales of properties priced over $1 million experienced a 23 per cent annual decline to 13,563 units sold in the first half of 2025.
Buyers in these price ranges were more impacted by economic uncertainty with the U.S. and are waiting on the sidelines to see how the market reacts.
Within the city of Toronto, luxury residential real estate activity was also muted, as prospective buyers delayed decisions.
Overall, sales of top-tier properties over $1 million declined 13 per cent annually to 4,951 properties sold in the first six months of the year, while sales over $4 million fell 23 per cent year-over-year to 142 properties sold in the first half of 2025.
Despite this general trajectory, ultra-luxury transactions over $10 million more than doubled to seven properties sold, compared to three sold in the same period a year prior.
Luxury single-family homes in prestigious neighbourhoods near top-tier schools, including Leaside, Riverdale, Upper Forest Hill, High Park and The Kingsway, remain coveted by prospective buyers, the report said.
Buyer’s market conditions remained pervasive across the GTA’s luxury condominium segment in the first half of 2025, as inventory surged, purchasing timelines lengthened, and price negotiations skewed in favour of prospective buyers, the report said.
Buyers also prioritized longer closings, Usher said, as those downsizing need time to sell their bigger, single-family home properties.
