Toronto Still Leading Canadian Luxury Property Market

Toronto will continue to lead the Canadian luxury property market in 2017 according to the latest report from Sotheby’s International Realty Canada.

Research from the property company foresees little change from the current trend throughout the year.

Toronto is expected to continue to take the lead in sales of homes worth over $1 million, while Vancouver’s luxury property sales will continue to normalize.

Calgary’s market is forecast to continue its cautious recovery from the oil price shock and luxury property sales in Montreal are anticipated to grow modestly, according to the report.

Last year, the British Columbia government introduced a 15 per cent tax on foreign buyers of Vancouver homes and the city of Vancouver imposed a tax on vacant homes.

‘We are forecasting that we are going to continue to see the market adjust to this new reality,” said president and CEO of Sotheby’s International Realty Canada, Brad Henderson.

Sales of homes for over $1 million in Vancouver fell to 209 units in January and February of this year, down 27 per cent from a year ago, Sotheby’s reported.

The luxury segment of the Vancouver market – defined as homes worth over $4 million – was even more dramatically affected, plunging 46 per cent from a year ago to seven units, according to the report.

In contrast, luxury property sales in Toronto continue to boom.

Sales of homes worth over $1 million increased by 87 per cent across the Greater Toronto region to 3,043 units in the first two months of the year compared to the same period last year, Sotheby’s said.

In Toronto proper, sales of $1 million-plus homes rose 44 per cent year-over-year to 943 units, while sales of homes worth over $4 million were up 147 per cent from a year ago to 42 properties.

Montreal also showed growth, with sales of $1 million-plus homes climbing 13 per cent year-on-year in the first two months of 2017 to 99 properties.

In Calgary, sales of high-end homes were flat in January and February, with 64 properties changing hands.