Toronto’s luxury real estate market is hotter than ever. Neighbourhoods such as Rosedale and Forest Hill are outselling Vancouver’s famously prestigious mountain and ocean views. How has Toronto surpassed Vancouver?
Compared to last summer, sales of single-family homes over the $1-million mark rose 83 per cent. This is not hard to believe as the average detached single-family home is now priced at over $1.2-million, with many houses reaching prices of $3-million and up. During the first half of the year, 10 per cent of all homes sold in Toronto were over $1-million. This summer alone, 3,026 were sold.
Vancouver is Falling Behind
For many years it has been a close battle between Vancouver and Toronto – with both markets boasting prestigious properties and a vast luxury segment. Vancouver’s recent tax for foreign investors has signaled the start of a decline in their luxury market. Vancouver’s sales for $1-million (and up) homes declined 30 per cent in July and 65 per cent in August compared to the same times last year. Only 288 of these homes were sold.
The tax is not only a financial penalty – it introduces a sense of uncertainty that can adversely affect investors.
Some experts are saying they expect Vancouver’s market to normalize this Fall. National Bank of Canada’s chief economist states that he expects the market to enter a correction period with price declines of at least 10 per cent.
China’s Role in the Luxury Market
In 2005, there were over 150,000 families in China that could afford a $20 million SECOND home! Now, eleven years later – this number is sure to be even more significant. It is no wonder China plays such a large role in Canada’s luxury market.
One platform that connects international agents with Chinese buyers says that according to their statistics – there was an 81 per cent decline in people searching for Vancouver and a 146 per cent increase in Toronto for searches within Canada in the last few months.
Toronto has long been positioned as Canada’s leading city and has some of the most valuable properties in the country. With its strong GDP growth, low unemployment, and well-paying jobs – Toronto will continue to be one of the most sought-after cities.
Are you interested in what a luxury home in Toronto looks like? Here are two of my current listings in the higher end of the spectrum:
1. 1898 Heritage Property in Rosedale – $10,900,000 – Beautifully restored and renovated Rosedale residence with beautiful landscaping.
2. Historic Rosedale Estate, almost 1 acre property – $9,280,000 – Magnificent Neo-Georgian home on park-like ravine edged land.
Experts argue that a house does not go up in value, only the land it sits on does. With less and less properties available in Toronto – luxury will be predominately defined by location. Toronto has desirable neighbourhoods with convenient access to amenities; and is showing no sign of the luxury real estate market’s decline.
Is there a property you are interested in? Feel free to give me a call at 416-921-1112 and I would be more than happy to help.