Toronto ranked world’s hottest luxury real estate market with 37% surge in high-end property sales
Toronto was ranked the world’s hottest luxury real estate market in a new report that shows US$100 million is the new benchmark for prime properties.
Compared with these two housing hot beds, Vancouver, the most expensive market in the country, and Toronto are seen as low risk even as average home prices soar past $1.4 million.
Demand for mega-mansions and penthouses has accelerated as wealthy buyers seek havens for their cash and search for alternative investments such as art and collectible real estate, according to the report Thursday by Christie’s International Real Estate, owned by auction house Christie’s.
While Toronto ranked 10th on the report’s luxury index overall it was first on the luxury thermometer as the only top city to see a 37 per cent increase in luxury home sales in 2014 compared to just four per cent the previous year.
“2014 was the Toronto market’s second-best year on record,” said Justine Deluce of Chestnut Park Real Estate. “If there had been more inventory, the record would easily have been shattered.”
The report said that low supply of homes in Toronto has pushed prices to $1–$2 million for relatively average homes in the city and up to $2–$4 million for larger homes or those in the most desirable neighbourhoods. The shortage of homes pushed luxury condo prices above $1 million as well in 2014.