Toronto has come on top on the list of “hottest” luxury real estate in the world.
The new annual White Paper report, by Christie’s International Real Estate and Canadian affiliate Chestnut Park Real Estate of Toronto, looked at macroeconomic factors impacting luxury home prices, inventory and sales globally across more than 100 real estate markets.
While the definition of “luxury real estate” varies, for Toronto (in 2016) the report defined it as properties worth $3 million US and above. And overall, the international luxury real estate market softened last year, according to the report, but markets such as Toronto and Victoria, in BC, defied the trend which was fueled by foreign buyers.
Among the highlights in the report is that the property market in Toronto almost doubled the number of million-dollar-plus sales in 2016 vs 2015 and topped the global “Luxury Thermometer” list.
And, perhaps not surprising anymore, while luxury homes globally spent 221 days on market, in the Toronto market it stood at 17 days on market (down from 28 days in 2015) and the lowest in the world. This is due to the low inventory which gets buyers to purchase fast.
In Canada, luxury home sales rose 36%, compared to the US where it declined by 3%.
Recently, the Ontario government began looking at ways to slow down the rate of price growth within local real estate by implementing a foreign buyer tax, but the Toronto Real Estate Board said that may not be the best solution.
Either way, we’re back on the top of a real estate list.
The hottest luxury markets worldwide are: (Based on year-over-year growth in sales of luxury properties, 2016 vs 2015)