Luxury condos top high-end market
Novermber 1, 2018
Sales of single-detached homes priced at $1 million to $2 million have declined in Toronto and Vancouver, down 35 per cent year-over-year, according to a Re/Max report on luxury home sales.
In contrast, condominiums in the $1-2 million range remain popular, particularly in larger urban centres. Toronto experienced a 2 per cent increase in luxury condo sales, while Vancouver sales were up 6 per cent and Victoria luxury condo sales increased 19 per cent.
“Many Canadian Baby Boomers saw an opportunity to cash-in, downsize and upgrade into the luxury market for retirement,” said Christopher Alexander, executive vice president and regional director for Re/Max Ontario-Atlantic Canada. “We’re also seeing an emerging trend of Millennials entering the lower end of the luxury condo market.”
While luxury condo sales soar, single-detached activity in Toronto and Vancouver continues to be impacted by the foreign buyers tax. Year-over-year single-detached sales in the $1-3 million range were down 37 per cent in Toronto and 31 per cent in Vancouver.
“The foreign buyers tax has impacted overseas activity, opening more opportunities for local buyers to enter the luxury market,” says Elton Ash, executive vice president, Re/Max of Western Canada. “As a result, local buyers are driving demand for luxury condos going into 2019, which is welcome news for developers in major city centres looking to build more properties.”
Canada’s condo hot spots of Toronto and Vancouver saw year-over-year increases in most expensive condo units on the market. In Toronto, the priciest condo sold for $11.5 million in 2018, up from $8 million in 2017—a 44 per cent increase. Vancouver saw a 34 per cent increases as the most expensive condo sold for $11.7 million, up from $8.7 million in 2017. In comparison, year-over-year declines in the highest selling price of a condo were in Calgary (down 53 per cent), Victoria (down 47 per cent) and Oakville (down18 per cent).