This year will see at least eight new condominium projects built to serve the growing super-luxury market, serving buyers who will not blink at a $1-million-plus price tag.
They will, however, fuss over services such as dog walking and room-service-style gourmet meals, and finishes like heated bathroom floors and marble-encased foyers. Among several reasons why the super-luxury boom didn't get a grip on Toronto until the past three years is that it took developers a long time to master the design, size and finishes that this market demands.
Last week's column touched on the fact that super-luxury products are not necessarily the exclusive domain of divorced bank presidents, the youthful dilettantes of Rosedale and oil-rich Middle Eastern expatriates.
As many in the resale detached market are only too aware, many houses in Toronto's well-regarded pockets are routinely fetching $1-million-plus closing prices. This is not Rosedale or Forest Hill of which I'm speaking. It is Lawrence Park in North Toronto, High Park in the west end, the Annex in midtown, even on some prestige streets in Riverdale and the Beaches on the east side of Toronto. All of these neighbourhoods have middle-class roots, and sellers never dreamed of being able to fetch seven figures when the time came to downsize.
Rendering of Four Seasons Private Residences Toronto (Four Seasons)
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So if they played their cards right, invested successfully for retirement, stayed out of debt and paid off the mortgage, many residents of these neighbourhoods found themselves sitting on the means to purchase a super-luxury condo suite outright.
Something to consider, though, are the steep monthly maintenance fees for these suites, which average about 80 cents a square foot — more than double that in more common condominium projects. A 3,200-foot-suite might include an additional $2,500 in monthly fees for access to those spas and dog walkers. Then again, these costs can also include utilities, and of course there is no immediate worry of expensive home repairs as there might be in that 75-year-old manse in North Toronto.
"What we're finding is that many buyers still need size to hold on to a lifetime's worth of antiques and treasures," says Pat Baker, president of Baker Real Estate Corp., which handles sales for several high-end projects around town, including the Ritz-Carlton Hotel and Residences, which is under construction downtown on Wellington Street and Simcoe Street.
"The great thing is that, in addition to that, they can now travel or spend a few months in Florida," she adds.
The super-luxury market appears to have boiled down to two categories, both very demanding, according to Ms. Baker. "One type of buyer likes the brand," such as the Ritz-Carlton or Four Seasons, she says. "The other type are people who are living there full time but also like instant hotel-style services."
So it should come as no surprise that five-star hotels are at the forefront of super-luxury developments. The Four Seasons Private Residences and Living Shangri-La Toronto are two currently primed for launching this spring.
Construction on another super-luxury hotel/condominium, the Hazelton Hotel and Private Residences on Yorkville Avenue, will be finished in the coming months, with 17 of its 18 suites sold (ranging in price from $3-million to $10-million). The remaining lodgings, built by Dawsco Group and Starwood Group, will consist of 77 hotel rooms.
Chief among the many features at the Hazelton is room-service access to the planned restaurant, One, to be run by celebrated chef Mark McEwan of North 44 fame.
At the Ritz-Carlton residences, Ms. Baker reports that more than 70 per cent of the 153 suites have sold, mostly in the $1-million to $3-million range, but suite sizes go up to 6,000 square feet for $8-million. Graywood Developments and Cadillac Fairview's foray into the super-luxury market seems to have paid off quite nicely, and occupancy in the 55-storey project is scheduled for 2009.
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