It’s no secret that Vancouver’s real estate is red hot right now, so it’s perhaps no surprise to see that the city ranks as the fastest growing luxury home market in the world.
The Prime Residential Index in Knight Frank’s 2016 Wealth Report says prices in Vancouver’s luxury home market grew 25% in 2015, outpacing 100 other major real estate markets globally. Sydney, Australia ranked second with 15% growth – that’s still a 10% difference between gold and silver.
The report notes low supply, high demand commanded by foreign investors, and a weak Canadian dollar have all contributed to the astronomical – even record-breaking – growth in prices of Vancouver’s luxury homes.
Cities that are normally associated with wealth saw moderate or even low gains comparitively. New York’s luxury home market grew just 2.4%, while London’s grew just 1%. Berlin saw 9% growth thanks to an investment boom.
The report notes that Vancouver is experiencing its lowest level of housing inventory in 25 years.
“The number of multifamily developments along the major transportation routes is rising but this is not enough to make up for the lack of prime market supply,” says Kevin Skipworth with Dexter Associates.
In the past 10 years alone, Vancouver’s number of millionaires has grown 68%, and further growth of 36% is expected into 2025.