Royal LePage Luxury Property Report Released
Royal LePage published it’s annual Royal LePage Carriage Trade Luxury Property Report yesterday. It has some fascinating insight and covers the B.C., Alberta, Ontario and Quebec markets. Most significantly, the findings are that luxury neighbourhoods show large price appreciation over last 10 years. and have also seen a increase in foreign buyers.
66% of real estate advisors surveyed believe foreign buyer activity increased since 2005 and 24% believe that 25% or more of luxury properties in their area are purchased by foreign buyers. 51% said China was the primary international purchaser. 60% anticipate increased foreign buyer activity this year. 67% stated that luxury property sales activity has increased since January 2015. Current activity is in line with the long-term trend, as 80% stated that activity in this category has increased since 2005.
“While the impact of foreign buying on Canada’s overall residential real estate market is small, we see it growing in importance in the luxury market,” said Phil Soper, president and chief executive officer, Royal LePage. “Canada’s stable political and financial systems, along with a tradition of cultural tolerance and openness to immigration and diversity, make our country an ideal destination for wealthy international purchasers looking to invest in real property. Recently, a lower Canadian dollar has made this proposition even more attractive.”
I’ve highlighted Ontario trends but you can find the link to see the report on all 4 regions below. The luxury residential real estate market in Ontario is strong, with increases in prices driven in part by an extreme lack of inventory in the region. Real estate advisors have seen a long-term trend in sales activity, with 76% seeing increased activity since January 2015, and 88% seeing increased activity since 2005. 69% said that there has been an increase in foreign buyer activity over the same 10-year period, and the top three most commonly cited factors motivating foreign buyers to buy in Ontario were: (1) a stable real estate market; (2) a stable financial system; and (3) a stable political system.
The data shows significant price appreciation in Canada’s luxury neighbourhoods. The Greater Toronto Area luxury property market shows a ten-year price increase of 69% across Carriage Trade Luxury Properties designated areas with the neighbourhood of Lawrence West experiencing a 76% from ten years earlier in 2005.
To see the full Royal LePage Carriage Trade Luxury Properties Report, click here. If you want to talk about how these trends affect you, give me a call!