The first half of 2025 has brought an unexpected spotlight to Toronto’s luxury real estate sector, with reports claiming a staggering 200% increase in sales of homes priced over $10 million compared to the same period in 2024. But what does this really mean for buyers, sellers, and market watchers? And is this dramatic rise a sign of long-term growth—or just a statistical anomaly?
What Counts as "Luxury" in Toronto?
The term "luxury" varies significantly depending on the market. Across much of Canada, a $1 million property might be considered luxury. In Toronto, however, that figure is closer to an entry point for ownership, especially when it comes to freehold properties. A $1 million listing may require substantial renovations just to meet modern expectations.
In today’s Toronto market:
Breaking Down the Numbers
A recent mid-year report from Sotheby’s pointed to 12 sales over $10 million in the first half of 2025, compared to just 4 in the same period last year. That’s a 200% increase—or, more precisely, a tripling of sales activity in this ultra-luxury segment.
However, it’s important to remember the scale. With such low transaction volume, even a handful of additional sales can create significant percentage jumps. The report also acknowledges that many ultra-luxury transactions happen off-market, as high-profile buyers and sellers often seek discretion.
Meanwhile, properties priced over $4 million—which fall under the broader "luxury" category—saw a decline. Only 222 properties sold in this range from January to June 2025, marking a 28% drop year-over-year.
City vs. Suburbs
Despite these declines, the sheer number of $1M+ sales underscores Toronto’s market maturity—averaging nearly 1,000 such transactions per month.
Shifting Buyer Behavior
One noticeable trend this year is the increased preference for longer closing periods. Many buyers—especially those downsizing or upsizing—are asking for extended timelines. This gives them flexibility to sell their existing homes or coordinate a purchase without resorting to escape clauses (a condition rarely seen in Toronto but more common in the outskirts).
This trend reflects a more cautious and calculated buyer base, particularly in the luxury sector.
What’s Happening in Toronto’s Top Neighbourhoods?
Neighbourhoods like Bridle Path, Sunnybrook, York Mills, Casa Loma, and Forest Hill North continue to dominate the luxury scene. In these areas:
Despite a slower pace in some segments, these areas remain in high demand, especially among families seeking proximity to top-tier schools and quiet, established neighbourhoods.
The Condo Market Picture
Toronto's luxury condo market faces a different reality. Increased inventory has given buyers more choice and negotiating power. Many are extending their purchasing timelines, while sellers are adjusting expectations.
This buyer’s market condition within the condo space is a stark contrast to the competitive nature of freehold luxury real estate.
While headlines about 200% growth might sound dramatic, they tell only part of the story. Toronto’s luxury market remains complex, segmented, and driven by nuanced buyer behaviour. Price thresholds that once defined luxury have shifted upward, and longer-term trends continue to reshape the market landscape.
For anyone considering buying or selling in Toronto’s upper-tier real estate market, understanding these dynamics—beyond the headlines—is crucial.
What Counts as "Luxury" in Toronto?
The term "luxury" varies significantly depending on the market. Across much of Canada, a $1 million property might be considered luxury. In Toronto, however, that figure is closer to an entry point for ownership, especially when it comes to freehold properties. A $1 million listing may require substantial renovations just to meet modern expectations.
In today’s Toronto market:
- Luxury condos typically start at $2 million.
- Luxury freehold properties are usually defined by the $3 million+ range.
- Ultra-luxury homes begin to surface around the $4 million to $10 million mark, with anything above that entering the rarefied tier of Toronto’s elite real estate.
Breaking Down the Numbers
A recent mid-year report from Sotheby’s pointed to 12 sales over $10 million in the first half of 2025, compared to just 4 in the same period last year. That’s a 200% increase—or, more precisely, a tripling of sales activity in this ultra-luxury segment.
However, it’s important to remember the scale. With such low transaction volume, even a handful of additional sales can create significant percentage jumps. The report also acknowledges that many ultra-luxury transactions happen off-market, as high-profile buyers and sellers often seek discretion.
Meanwhile, properties priced over $4 million—which fall under the broader "luxury" category—saw a decline. Only 222 properties sold in this range from January to June 2025, marking a 28% drop year-over-year.
City vs. Suburbs
- Looking at Greater Toronto Area (GTA) trends:
- Properties over $1 million experienced a 23% decline, totaling 13,563 sales.
- Within the City of Toronto, sales over $1 million dropped 13% to around 5,000 transactions.
- Sales over $4 million in the city saw a 23% decrease, with 142 sales recorded.
Despite these declines, the sheer number of $1M+ sales underscores Toronto’s market maturity—averaging nearly 1,000 such transactions per month.
Shifting Buyer Behavior
One noticeable trend this year is the increased preference for longer closing periods. Many buyers—especially those downsizing or upsizing—are asking for extended timelines. This gives them flexibility to sell their existing homes or coordinate a purchase without resorting to escape clauses (a condition rarely seen in Toronto but more common in the outskirts).
This trend reflects a more cautious and calculated buyer base, particularly in the luxury sector.
What’s Happening in Toronto’s Top Neighbourhoods?
Neighbourhoods like Bridle Path, Sunnybrook, York Mills, Casa Loma, and Forest Hill North continue to dominate the luxury scene. In these areas:
- 23 properties with six or more bedrooms sold for over $2 million.
- The median price of these transactions was $5 million, reinforcing their ultra-luxury status.
- Many of these properties feature the largest lots and most impressive builds in the city.
Despite a slower pace in some segments, these areas remain in high demand, especially among families seeking proximity to top-tier schools and quiet, established neighbourhoods.
The Condo Market Picture
Toronto's luxury condo market faces a different reality. Increased inventory has given buyers more choice and negotiating power. Many are extending their purchasing timelines, while sellers are adjusting expectations.
This buyer’s market condition within the condo space is a stark contrast to the competitive nature of freehold luxury real estate.
While headlines about 200% growth might sound dramatic, they tell only part of the story. Toronto’s luxury market remains complex, segmented, and driven by nuanced buyer behaviour. Price thresholds that once defined luxury have shifted upward, and longer-term trends continue to reshape the market landscape.
For anyone considering buying or selling in Toronto’s upper-tier real estate market, understanding these dynamics—beyond the headlines—is crucial.
