"If you (as a developer) have units left to sell, and people are taking them to market to resell, there is just not a whole lot you can do about it," said Howard Tikka, director of marketing for Talon International, developer of Toronto’s Trump property. "I think any developer has concerns about that."
While exact numbers are unavailable, none of the high-profile hotel-condo developments now perched against the Toronto skyline have sold out.
Developers are in fact scrambling to offload the last of their units before a torrent of their own buyers bring their units back onto the market.
Many of those buyers, who may have bought units ranging in price from $1 million to $28 million as long as two years ago, are waiting on the developer’s OK to start their own selling bonanza.
The MLS sales are expected to number in the hundreds, which suggests that supply may outweigh demand.
"I think on the luxury side, the market has already peaked," author Don Campbell, president of the Real Estate Investment Network, told Reuters this week.
That may be demonstrated in the sales numbers at Trump’s Toronto tower.
As much as 40 percent of its residential condos remain unsold, said Talon. About 20 per cent of its 379 hotel-condo units are similarly without owners.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate