Luxury home sales in the Greater Toronto Area accounted for more than $3 million in the final quarter of 2024—40 per cent ahead of the same period one year ago.
There were just over 360 freehold and condominium properties sold, up from 259 sales, according to an analysis by RE/MAX Canada.
“The impact of the first and second 50-basis-point rate cuts by the Bank of Canada radiated throughout the GTA in the fourth quarter, jumpstarting demand for high-end properties both within the city and suburbs,” said RE/MAX Canada President Christopher Alexander. “We’ve been expecting a surge in top-tier sales activity as the economic climate and corresponding pause in buying intentions prompted a build-up in pent-up demand. The fourth quarter did not disappoint.”
In Toronto, buyers capitalized on suppressed housing values, at price points between $5 million and $7.5 million. Sales over $5 million reported the strongest percentage gains, with more than 80 properties changing hands—an increase of almost 59 per cent over the same period in 2023, according to MLS data from the Toronto Regional Real Estate Board (TRREB). A 41.2-per-cent increase was posted in home sales over $7.5 million (24 versus 17), while the number of homes sold over $10 million were comparable with year-ago levels.
“The momentum in the luxury segment has outpaced the overall market in 2024,” explained Alexander. “Affluent buyers appear to have acclimatized to Toronto’s higher land transfer tax structure, which went into effect on January 1, 2024.
“The initial shock of the tax hike has likely subsided, and purchasers are simply treating it as the cost of doing business. That said, nearly half of the high-end sales over $5 million reported by TRREB occurred on the outskirts of the city. Last year, sales in the 905 represented just 36 per cent of luxury homebuying activity.”
He says the uptick in activity sets the stage for a strong luxury market in 2025.
“After several years of softer sales at higher price points, affluent buyers have the confidence to move forward once again,” he added. “Supply has been a considerable factor hampering strong buyer intentions and we expect that to continue. While we do expect to see more listings come on stream, they’re being offset by the increase in buyers moving off the sidelines.”
Values held steady in markets with tighter supply. Areas with greater selection experienced a five- to 10-per-cent decline, especially at the $5 million to $7.5 million price point.
The strongest activity occurred in Toronto’s Rosedale-Moore Park area, with 13 sales, followed by Forest Hill South (7), Bridle Path-Sunnybrook-York Mills (5), and St. Andrews-Winfields (5). In suburban markets, Oakville (8) led in terms of sales over $5 million, followed by Richmond Hill (6), Vaughan (4), King (4) and Milton (4).
Luxury homebuyers are slowly re-entering the top end of the condo market after condos experienced instability across all price points last year. A turnaround is expected by the end of 2025 and in early 2026, as aging sellers move to luxury condos. Opportunity, followed by safety and security, is motivating the move to condos. For example, a new luxury condo project in the Bridle Path with large units is selling well in pre-sales.
According to RE/MAX Canada, there has been a resurgence in luxury home-buying activity among young, landed Chinese immigrants. Many are seeking assistance from their parents abroad.
“China continues to grow in affluence, with significant purchasing power in all categories of luxury goods globally and real estate remains no exception, despite stricter policies on foreign ownership in several countries,” the analysis states. “The transfer of wealth from baby boomers will also continue to empower Gen X, Millennials and some Gen Z buyers, with billions of dollars poised to change hands in Canada over the next decade. In many cases, this is happening sooner in life in the form of an early inheritance gifted by living relatives. Statistics Canada reports that nearly one-third of all first-time buyers in Canada cover their down payment—in whole or in part—by money from parents or relatives. Wealth transfer is propping up home-buying activity across all segments, including the luxe and uber-luxe segment.”
