Toronto is currently the second hottest market for luxury real estate according to a new report by Christie’s International Real Estate. Auckland, New Zealand took the number one spot. Another Canadian city, Victoria, ended in the third spot.
This is no surprise as Toronto has some of the best luxury properties in many of its neighborhoods. Real estate agencies are seeing a boom in this particular category. Not just locals, foreigners are showing interest in luxury home for sale in Toronto. If you’re looking for options, you can check out Kevin Loberg homes Toronto.
Sale rates are increasing
Auckland saw a staggering 64 percent growth in the sales of luxury property in 2015. This rate in Toronto was 48 percent. This evidently shows thatToronto is absolutely the best place to live in luxury. The survey included 100 markets all around the world. The list included the likes of Valencia, San Francisco, Sydney and Stockholm.
Any residential property worth $3 million or more is considered luxury in Toronto. This is not a global criterion, the luxury homes definition varies by market. The average worldwide is considered $2.2 million. This boom is attributed to the increasing demand and the low existing supply of luxury real estate. There are way too many buyers than there are properties. This is why luxury homes in Toronto sell faster than any other city in the world. A luxury home can have a sold sign in average 28 days. And you should know that luxury homes take months to sell.
Even though the worldwide luxury home market is seeing a slight slowdown, largely due to the economic and market volatility. Toronto, nevertheless, saw an increase in the sales of such big priced estates. If the worldwide economy was better than what it is now, the luxury home market would have seen even bigger numbers.
The buyers are coming from across the world. The favorable conditions like strong investment system, reliable government, quality education and diversity are all attracting foreign buyers. According to Royal LePage, 25 percent of the luxury homes in Canada belong to foreign buyers. And most of these homes are in Toronto and Vancouver. In fact, there is a bigger market of luxury homes for sale in Toronto. Many foreigners come to Canada for vacations and end up buying luxury vacation homes. The low dollar also plays a vital role.
The next big thing
There is a changing trend globally when it comes to luxury properties. Cities that have been traditionally associated with luxury homes since a very long time are now seeing drop in the luxury home sales. London, New York City and Hong Kong are among such cities. Now, cities like Toronto and Victoria are becoming the new player in the multibillion dollar luxury real estate industry.
So if you are interested in buying a luxury home in Canada, Toronto might be the best option. It is a vibrant city with much diversity. It has luxury properties in neighborhoods like Yorkville, Moore Park and Rosedale.