While it can seem like there’s no slowing down when it comes to the red-hot real estate market as a whole in Vancouver, it appears that at least one segment of it has cooled significantly.
According to a new Bloomberg report, the city’s luxury real estate market saw the biggest drop in luxury home prices around the world year-on-year, with prices down by 11%.
The findings come from the latest Knight Frank LLP’s Prime Global Cities Index, which looked at the gains and losses of luxury real estate in cities around the world.
Coming out on top of the list this year was Singapore, where Bloomberg said luxury home prices in the island nation rose by 13% in the quarter ended September 30, from a year earlier. The report noted that gains here were partly driven by the “limited availability of high-end properties.”
In its Mid-Year Top-Tier Report, Sotheby’s looked at real estate activity across the country for those in the $1 million market.
It found that the Vancouver $1 million-plus market experienced a “dramatic slowdown” in the first half of 2018, with $1 million-plus sales down 36% year-over-year to 885 homes sold, and sales over $4 million down 55% to 86 homes sold.
“In the face of the Government of BC’s February 2018 implementation of a 30-point plan for housing affordability… the $1 million plus single-family home market saw a significant pullback in activity, while the condominium and attached home markets remained resilient,” the report said.
Overall, residential real estate sales over $1 million decreased 19% year-over-year to 1,939 units in the first six months of the year, and $4 million-plus sales decreased 47% to 111 units as consumer confidence and market engagement waned.
The most dramatic slowdown was in the single-family home market, which entrenched into buyers’ territory as sales over $1 million and $4 million fell 36% to 885 homes sold, and 55% to 86 homes, respectively.