Toronto’s condo market and its penthouse market have become two very different stories. While the broader market continues to favour buyers with higher inventory and longer selling times, Toronto penthouses in select luxury buildings are still attracting strong demand and selling much faster than the rest of the market.
A Market Split in Two
TRREB’s June 2026 Market Watch shows a Toronto housing market that is still adjusting. Home sales across the GTA rose 9.4% year over year to 6,770, but the average selling price slipped 3.9% to $1,058,658. While active listings and new listings both declined as fewer sellers entered the market, condo apartments remained the weakest segment, with average prices falling 9.4% to $630,688.
The luxury market is proving that not every condo is affected by the same market forces. Sotheby’s International Realty Canada reported 12 GTA home sales above $10 million in the first half of 2025, compared with just four a year earlier. While much of the condo market continues to face slow absorption, penthouses in a select group of buildings are still attracting buyers almost as soon as they hit the market.
What “Sky Palace” Actually Means
While the phrase has its roots in Canadian politics, Toronto’s luxury real estate market has given it a new meaning. It now describes the city’s most exclusive penthouses, where buyers expect far more than premium finishes. These homes often include private elevator access, hotel-level services, custom floor plans, and interiors designed to showcase a homeowner’s art, furnishings, and lifestyle.
Where Penthouses Sell Fastest
While the average Toronto condo spends about 38 days on the market, the city’s most exclusive penthouses often sell much faster. Their appeal comes from rarity rather than pricing, with buyers competing for a limited number of homes that rarely become available.
The Next Generation: Supertalls and Branded Towers
138 Yorkville
138 Yorkville is raising expectations for what a Toronto penthouse can be. The luxury tower, expected to open in 2028, will feature residences starting at around $10 million, topped by a two-storey, 19,700-square-foot penthouse with a private rooftop terrace.
With an asking price of up to $83 million, it has the potential to become one of the highest-priced residential listings in Canadian history. The project also combines architecture by BBB Architects with interiors by Studio Munge and more than 100 trees integrated throughout its terraces.
The One
The One is designed with flexibility in mind. The landmark tower at Yonge and Bloor, now managed by Tridel following the 2025 ownership transition from Mizrahi Developments, is expected to welcome residents in 2028.
Its exterior structural system, designed by Foster + Partners and Core Architects, removes the need for interior load-bearing walls, making it easier for buyers to combine suites into spacious full-floor homes.
Peak Transactions: What Actually Sold in 2025
What’s Driving This
Customization Over Move-In-Ready
Today’s luxury buyers are looking for something that feels uniquely their own. Instead of paying for someone else’s design choices, many are buying unfinished penthouses and creating custom homes from the ground up. That was the case with PH3 at 7 Dale Avenue, Toronto’s top penthouse sale of 2025, and it is the same model being offered at both 138 Yorkville and The One.
Hotel-Branded Service Is the New Standard
For many luxury buyers, the building matters just as much as the home. Concierge service, valet parking, housekeeping, and hotel-style amenities have become expected features at the top end of the market. The popularity of the Four Seasons Private Residences shows just how much buyers value that lifestyle.
The Luxury Market Is Following a Different Cycle
The slowdown affecting most condo buyers has not reached every corner of the market. While average condo prices declined across the GTA, wealthy buyers continued to purchase homes worth more than $10 million at a much stronger pace. Many of these transactions involve buyers who rely less on mortgages, making them less affected by higher borrowing costs.
Where the Sky Palace Boom Goes From Here
With 138 Yorkville and The One both expected to reach completion in 2028, Toronto penthouses are about to enter a new chapter. An $80 million-plus penthouse would have seemed unrealistic just a few years ago, but its success will reveal whether Toronto has truly arrived as a global destination for ultra-high-net-worth buyers or is still a market that produces occasional record-breaking sales.
For now, recent trends point to growing confidence, with the city’s most expensive transactions concentrated around Yorkville and Rosedale.
Thinking about buying or selling in Toronto’s luxury condo market? Zoocasa can help. Start your search today.
