Toronto project defies real estate softening trend

Though Toronto’s condo sales are cooling overall, there’s a hot spot in Yorkville that’s defying sharp downward sales trends.

In October 2012, Mizrahi Developments launched a project at 181 Davenport in Toronto’s Yorkville neighbourhood. And amid gloomy media reports, it’s defied market predictions.

In approximately 60 days, over 50% of the residences have sold. Occupancy is scheduled in 2015.

Read: Investment in non-residential construction rises

At the start of January 2013, Mizrahi Developments also achieved a weekly record in dollar-figure sales with customers purchasing homes at both 181 Davenport and Mizrahi Developments’ adjacent luxury condo building, 133 Hazelton.

This is suprising because sales in luxury residential buildings—which constitute the top 5% of the condominium market in the city—have slowed in excess of the rest of the condo market.

Overall, it’s seen a 30% decline in sales, quarter over quarter, since 2011, says Ben Myers, editor and executive vice-president of Urbanation Inc.

“In 2007 and 2008, there were very strong sales in the luxury Toronto market…but there has been significant cooling since then, and some projects have had to be pulled from the market,” says Myers.

Read: Canadian home sales down 17.4%

Sam Mizrahi, president of Mizrahi Developments, says he’s found the secret of success, however.

He says, “Toronto is transforming itself into an international city. The immigration behind Canada’s growth is driving an international style of building, and that’s what we went out to create: an old-world style of building with craftsmanship that reminds people of a more international, European sensibility.”

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