Markets in the Greater Toronto Area and Vancouver had a record year for residential real estate over $1 million in 2015, with the most significant sales gains in real estate over $4 million, according to a Jan. 7 report by Sotheby’s International Realty Canada. Meanwhile, the Montreal luxury real estate market remained balanced, while Calgary’s saw declining activity.
The GTA led the country in luxury real estate sales over $1 million (for condominiums, attached and single-family homes), posting a record 48 per cent year-over-year increase in 2015 with the sale of a total of 11,112 properties over $1 million, exceeding the 38 per cent increase in 2014. In luxury condominium sales, the GTA posted a 37 per cent year-over-year increase for 2015.
In Vancouver, real estate sales over $1 million increased 46 per cent in 2015 compared to 2014, almost double the 25 per cent increase in 2014 compared to 2013. The luxury condo market in Vancouver alone experienced a 44 per cent year-over-year increase over 2014.
In Montreal, luxury sales over $1 million posted a 15 per cent increase year-over-year, indicating a balanced market, with prices stabilizing in condos, attached homes and detached single-family homes. Luxury condominium sales over $1 million rose 24 per cent year-over-year.
In Calgary, however, the downturn in the energy sector and economic uncertainty caused the luxury real estate market to post a 41 per cent decline compared to 2014. In Calgary’s luxury condo market, sales declined 32 per cent year-over-year. Previously, Calgary’s luxury market favoured sellers but is now a buyers and investors market.
Sotheby’s International Realty Canada’s bi-annual Top-Tier Real Estate Report focuses on residential properties over $1 million that were sold between January 1 and December 31, 2015, and analyzes the sales volume, number of days on market and percentage of homes sold over the asking price. The report also mentions recent home sales in some prominent luxury neighbourhoods.
Sotheby’s report also states that the GTA and Vancouver are expected to continue to lead luxury retail sales in the country in 2016 due to low interest rates, below-national average unemployment levels, sustained international investment and immigration and high levels of consumer confidence. Montreal’s luxury market is expected to remain balanced, while sales in Calgary are expected to fall further due to the effect of declining oil prices.
