The Impact Of The Foreign Buyer's Tax On Condominium Prices And Sales
On April 20th of this year the provincial government announced at 15% Foreign Buyer’s Tax that sent the Toronto real estate market into a downward spiral.
The average sold price for a Toronto property peaked in April at $943,947. Then starting in May, the average sold price fell consecutively for 4 months.
However taking a closer look at the condo market, with a specific focus unit sales in Yorkville area, prices of Yorkville condos have not been directly impacted by the Foreign Buyer’s Tax.
While house prices were falling in the month of May, sold prices for Yorkville condos were actually rising and reached their highest level for the year in the month of June with an average sold price of $1.523M.
With the exception of the peak months of April, May and June, the average sold price for a Yorkville condo has been fairly stable landing in the $1M to $1.1M range.
Now that we are coming to the end of 2017, sold prices for Yorkville condos at the end of October are still higher than they were in March.
While overall property sales in the City of Toronto are starting to stabilize, sold prices have not yet been able recover to the level they achieved in March.
If we break it down by price per square foot, we see a similar pattern emerge with the sold price/square foot for a Yorkville condo peaking in the month of June at $1228.
This also the first time Yorkville condos sales have broken the $1000/sf barrier. Since January of this year, each month the average sold price per square foot has been consistently above the $1000 mark.
Despite the implementation of the Foreign Buyer’s Tax and its negative impact on overall property prices in the City of Toronto, the Yorkville condo market continues to remain stable and strong.
Victoria Boscariolis a real estate agent in Toronto Canada with Chestnut Park Real Estate Limited Brokerage. With over 20 years experience, Victoria has been helping people successfully buy and sell condos and houses in Yorkville and downtown Toronto. As a Certified International Property Specialist (CIPS) she has worked with Buyers from around the world moving to Toronto from China, Russia, Brazil, India, South Africa, United Arab Emirates, Jordan, Cyprus, Italy, Germany, The United Kingdom, Australia and the United States.