With headlines warning of a housing bubble and the Mayor of Toronto meeting with the provincial and federal finance ministers to discuss strategies to cool and take control of the market, you’d think some developers may be hesitant to launch an ultra luxury development. Well, Madison Group and Nobu Hospitality are confident that Toronto is the ideal city for Nobu to make their Canadian debut and unveil their hotel and condo development.
Nobu is known for their high-end sushi restaurants; they have locations in 18 countries across five continents. The brand is widely recognized in world-class cities like New York, London, and Tokyo, so why didn’t they decide to launch their first condo in one of those cities?
In other countries, it’s not that unusual to see a brand that seemingly has nothing to do with real estate attached to a condo development. For example, Miami has a Fendi Chateau Residences and a Porsche Design Tower. In case you’re somehow unfamiliar with these big names, Fendi is an Italian fashion house, and Porsche is a German luxury car manufacturer.
Having a high-end brand name attached to a residence brings a new level of luxury to the project. That’s not to say that Nobu doesn’t know what they’re getting themselves into. They’ve done their research and have partnered with Toronto-based Madison Group.
“For many years we have searched for the perfect opportunity within Toronto to create a true luxury lifestyle destination befitting the acclaimed global city of Toronto and our international brand,” Nobu Hospitality CEO Trevor Horwell said in a CNW release. “Our partners at Madison Group have an extraordinary vision for the first Nobu Residences, and share our passion to build a truly special integrated residences, hotel and restaurant destination.”
For those living in the GTA, the housing market may seem out of control, but on an international scale, Toronto is a young and flourishing environment for real estate investment. According to Numbeo figures in a Financial Post article, the average price per square foot for a new condo unit in the GTA is $652 (BILD update: $666). That’s only $486 USD. Now compare our average to San Francisco where the average price per square foot is $1,122, and in Hong Kong, you’re paying $2,368 on average.
When it comes to mortgages as a percent of income, the average is 58% in Toronto. In San Francisco it’s 75% and in Hong Kong it’s 236%. Yes, we’re experiencing a rapid increase in prices, but demand is still strong and homes are still selling. It seems like Toronto is pretty far from becoming a Hong Kong.
Nobu Residences will rise on Mercer Street in the heart of the Entertainment District. There will be two 49-storey towers and 700 suites. The podium will house ground floor commercial space, a private social area, a meeting space, a fitness centre, and an outdoor Zen garden. The Pilkington Glass Factory’s historical facade on site will be maintained and incorporated into the new development.
Nobu Residences is scheduled to open this summer. If you’re interested in staying up to date on Toronto’s latest luxury hotel and condo project, register today!