City life has changed drastically in the last twelve months, and some luxury condos for sale in Toronto are feeling the effects.
Strata real estate agent Nathaniel Hartree-Hallifax explained to Narcity that residential units at luxury hotels like Bisha Hotel & Residences and The Soho Metropolitan could be dropping in price due to the economic toll of the pandemic.
Much like the state of the condo market in upscale areas like Yorkville, many luxury properties in the city are seeing their value decrease significantly right now.
What are luxury hotel condos in Toronto?
Hartree-Hallifax says there are two types of luxury hotel condos in Toronto.
Hotel condos can be regular hotel rooms that are used for short-term stays only. However, some buildings like One King West or the Cosmopolitan have condos that are designed for permanent living alongside regular rooms.
There are also condos attached to hotels, with more residential units than short-stay rooms. This includes places like Bisha, the Ritz-Carlton, Shangri-La, and Four Seasons. Condo owners in many of these buildings also have access to amenities like the pool and spa.
Why are they dropping in price right now?
Hotel condo units, along with other luxury properties, "can take the biggest hit when the economy isn't doing well," said Hartree-Hallifax.
"Because these units already have a very high price-per-square-foot and maintenance fees, they tend to appreciate slower than less-exclusive properties."
This also applies to penthouses in Toronto, Strata's Broker of Record, Robert Van Rhijn told Narcity last month.
"When times are tough economically, it’s usually the luxury market that’s hit the hardest," he said. "We saw this happen in 2008, and then in 2020."
What are some of the cheapest luxury hotel condos for sale in Toronto?
Right now, there are a number of condos in upscale hotels that are on the market for less than $500,000.
This Bisha Hotel bachelor pad costs $489,000, with membership access to the rooftop infinity pool and lounge.
Cover photo used for illustrative purposes only.