High-end real estate hits new heights worldwide in 2012 as rich look for safe havens

Rizwan Dhanji has the ultimate trophy for the growing number of billionaires and millionaires now scouring the world for that perfect place to call home — at least while their private jet is parked in Toronto.

It’s an almost 12,000 square foot penthouse on the 78th floor of the tallest residential condo in Canada offering 360-degree views of the city, its coveted schools and shopping.

The one-of-a-kind condo, yet to be built in Canderel’s Aura building at Yonge and Gerrard Sts., is listed for only $18.5 million.

That’s a bargain compared to the $88 million (all figures U.S.) apartment snapped up by an international buyer last year in New York or the $121 million record price paid for a place in London in 2012.

Prestige real estate — be it a luxury home in Paris or a sprawling Dallas mansion with underground parking for a car collection — hit record prices in 2012, with Toronto tagging along for the ride despite a softening toward year’s end, says Christie’s International Real Estate.

The survey of high-end real estate in 10 international cities — including the sought-after Cote d’Azur — makes it clear that the recession has done little to slow to HNWI market (high-net-worth-individual.)

In fact, there are now more billionaires and millionaires than there were in 2008 and the only thing hampering their hunt for bragging-right properties is low inventory and strong international demand, says the report titled Luxury Defined: An Insight into the Luxury Residential Property Market.

Real estate is now taking on the appeal of high-end art, the report notes: both are about “passion and investment.”

The average per square foot for luxury properties in 2012 ranged from $601 in Dallas to $4,849 in London, with Toronto coming in at $2,500 per square foot but holding the record — at 46 days — for lowest time on market.

In Los Angeles, the report notes, the wealthy want “large master suites that encompass 25 per cent of the entire home and include a gym, home offices, a meditation room, balconies and terraces.”

In Toronto, HNWIs are seeking “architectural excellence in prime locations with the latest finishes,” says Chestnut Park Real Estate founder Catherine Deluce.

That’s exactly what Riz Dhanji, vice president of sales for Canderel has been promoting during overseas trips and one-on-one meetings over the last year with about a half dozen interested high-end buyers from China, the Middle East, Egypt and elsewhere.

“I feel that people overseas see there is great value in Toronto. They want something that is unique,” says Dhanji. “They are attracted to the height of the building, the fact they will have an unimpeded 360 view of Toronto.

“They love the fact they would be right downtown, right in the centre of it all and their kids are just steps from Ryerson and the University of Toronto. Price is not an issue if it’s the right fit.”

Nor is concern about softening condo prices, notes Dhanji.

“We’re really reasonably priced compared to the rest of the world.”

Toronto high-end realtor Richard Ling represents an 18-year-old who was kicking the tires on Aura’s penthouse. The scion of a wealthy Chinese family, owners of a major department-store chain, was looking for a university residence.

“The most important thing these buyers are looking for is a sound investment in a safe place. But it’s also about bragging rights. When you make an incredible amount of money, you want to show it,” says Ling.

While the shell of Aura is only up to the 55th floor so far, interested buyers can take a virtual tour or are given a taste of what their customized penthouse could look like — albeit a fraction of the size, a 5,000 square feet College Park condo owned by one of Canderel’s principals.

But Dhanji acknowledges that selling the biggest, and one of the priciest (the Four Seasons holds the record for a condo sale at $28 million to an international buyer), takes unusual patience and care.

March 04, 2013: 6:15 PM
The Toronto Star
Susan Pigg / Business Reporter