Luxury living here to stay: Sotheby's
Coming off a strong showing in 2017, luxury real estate markets in Canada’s three largest cities will remain robust this year, according to Sotheby’s International Realty Canada’s Top-Tier Real Estate Report.
Sotheby’s President and CEO Brad Henderson says that with strong projected GDP growth in Toronto and Vancouver, there will be strong absorption of luxury properties.
“Luxury properties in great locations will always be in demand,” Henderson told REP. “There were strong, stable prices over the last year and I expect that will continue over the coming year. GDP growth in Vancouver and Toronto is expected to be well over 2.5%, so it should continue strong in both markets.”
Activity in the GTA’s top-tier condominiums market last year outpaced all other Canadian markets, both in percentage gains and volume. Sales in the region’s million-plus category were up a whopping 59% year-over-year, and even more impressively, sales for $4mln-plus homes were up 91%.
“When we saw the actual statistics, what we were surprised at is how resilient condos were in Toronto in the face of the Fair Housing Plan,” said Henderson.
Sales in Vancouver’s luxury condo market weren’t up quite as high, although the 27% year-over-year increase in 2017 was still robust.
Montreal has been riding a high the last couple of years, and there’s nary a reason to believe that won’t continue in 2018, according to the report. While activity has been overshadowed by Toronto and Vancouver, where growth is beginning to taper, the Quebecois metropolis is enjoying an ascendance it hasn’t seen in years.
“Montreal is going to continue to be a very healthy market,” said Henderson. “When you compared it to Toronto and Vancouver in the past, it always looked like a comparatively slow-growing market. But that was always comparing a relatively healthy market with markets experiencing hyper growth. Toronto and Vancouver are retrenching, but Montreal’s standing out as a strong performer. Expect it to continue on over the next couple of years with upward pressure on price.”
Henderson says 2018 will be a strong year in Calgary, where GDP growth is expected to surpass 3%, suggesting the worst is behind the city. Henderson
“I would think that’s most people’s views, and what we’ve seen, is better quality properties in better quality neighbourhoods have responded first and fastest, and that will have allow other properties to come along with them,” he added.
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