Activity in the two markets contributed to a 36% year-over-year increase in luxury property sales nationwide in 2016
Toronto and Victoria stand tall as the premier luxury real estate destinations in the country, according to a new White Paper report by Christie’s International Real Estate and Canadian affiliate Chestnut Park Real Estate of Toronto.
The annual report, which surveys more than a hundred real estate markets worldwide, showed that the Toronto exhibited almost double the number of sales of high-end homes (properties priced U.S.$3 million and above) in 2016 compared to the year prior.
The Toronto urban luxury market’s intensity has also started affecting its feeder vacation home market Muskoka, which saw a 20 per cent year-over-year increase in value.
“The increase in sales volume is having a dramatic impact on supply, consistent with the urban market experience. The recreational marketplace is beginning to mirror Toronto,” Chestnut Park Real Estate CEO Chris Kapches said.
“Measured by unit, sales of million-plus homes were up 55% in Muskoka and 90% in Toronto,” the report added.
Meanwhile, “the Victoria BC market saw significant growth from affluent international buyers who were deterred by Vancouver’s new 15% foreign buyers tax.”
All in all, nationwide sales of luxury second-home or vacation homes increased by 36 per cent, a marked contrast to the situation south of the border with the U.S. suffering a 3 per cent decline. The trend is “reflecting a prevailing sense of uncertainty among buyers, particularly foreign buyers,” the report stated.
The full report can be accessed here.