Demand for luxury property remains strong in many of Canada’s cities but for million-dollar condos one market has seen a huge surge.
Sales of homes priced $1 million or more increased in the first seven months in Victoria, and Calgary but it was the GTA where sales were up 85% year-over-year according to data from RE/MAX Ontario-Atlantic Canada.
The gain for GTA luxury homes was largely down to two effects of an overall increase in prices in the market. The gains pushed some condos over the $1m+ threshold, while Baby Boomers used equity in their homes to move into the luxury condo market.
The GTA also saw strong demand for luxury single-family detached homes with a 25% rise year-over-year in the first seven months of 2017 although there may be more readjustment following the introduction of the Fair Housing Plan.
Single-family homes priced over $3 million increased sales by 55%.
In the Toronto suburb of Oakville, the $2.5-3 million sector saw sales surge 112%.
Meanwhile Vancouver’s single-family home sales in the $1-2 million price range declined 32% year-over-year.
"The foreign buyer tax introduced last year—combined with a good selection of luxury single-family detached homes—reduced buyers' sense of urgency in this segment of Vancouver's market," said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada.
Vancouver’s luxury condo market saw increased demand, rising 11% year-over-year and outpacing supply.
"As a result we are seeing more developers turn their attention to condo projects and are anticipating more luxury units to enter the market in the coming years," added Ash.
Victoria’s $1m+ market gained 10% in the first seven months of the year relative to the same period of 2017, while Calgary saw a 21% gain as consumer confidence increased following the slump for the oil industry.
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