Christie’s International Real Estate’s Canadian affiliate Chestnut Park says Toronto has lowest time-on-market globally
May 10, 2017 (Toronto, ON) – Two Canadian cities – Toronto, followed by Victoria BC -- top the list of “hottest” luxury residential real estate markets in the world, according to a new White Paper report released today by Christie’s International Real Estate and Canadian affiliate Chestnut Park Real Estate of Toronto, a Peerage Realty partner company.
The annual report examines how macroeconomic factors impact luxury home prices, inventory and sales globally across more than 100 real estate markets in the Christie’s affiliates universe. The definition of “luxury real estate” varies by market, but for Toronto (in 2016) it’s defined as properties worth $3 million (U.S.) and above. The average worldwide starting point for luxury real estate is $2.1 million (U.S.).
Overall, the international luxury real estate market softened in 2016, according to Christie’s, but markets such as Toronto and Victoria defied the trend, in part fueled by foreign, and in particular Chinese, buyers, the report says. Global uncertainty was named as a primary cause for some traditionally strong luxury markets to decline or stall.
Regionally, the growth in luxury real estate sales declined in the United Kingdom (down 67%), Asia Pacific (down 29%) and the United States (down 4%) while Europe rose 20% and Canada increased a whopping 44%.
Here are highlights:
• The already hot prime Toronto property market showed almost double the number of million-dollar-plus sales in 2016 vs 2015 and topped the global “Luxury Thermometer” list
• Globally, luxury homes spent 221 days on market, up from 195 days in 2015 but the Toronto market stood at 17 days on market (down from 28 days in 2015) and the lowest in the world, fueled by extremely low inventory and rapid price increases that pushed buyers to act fast
• The Victoria BC market saw significant growth from affluent international buyers who were deterred by Vancouver’s new 15% foreign buyers tax
• The report says capital inflows from foreign buyers remained strong but shifted demographically. Notably, Chinese buyers penetrated markets in Montreal, new enclaves in Toronto and areas outside of Canada new to this buyer group, such as North Carolina
• Luxury second-home or vacation home sales rose 36% in Canada in 2016 vs a decline of 3% in the U.S., reflecting a prevailing sense of uncertainty among buyers, particularly foreign buyers The heat of the Toronto urban luxury residential market spread to its feeder vacation home market of Muskoka, where values rose 20%. “The increase in sales volume is having a dramatic impact on supply, consistent with the urban market experience. The recreational marketplace is beginning to mirror Toronto,” said Chris Kapches, CEO of Chestnut Park Real Estate. Measured by unit, sales of million-plus homes were up 55% in Muskoka and 90% in Toronto.
• The report sees softening in global luxury home sales overall with higher days on market and selling prices below asking -- the result of hot property markets causing overly ambitious “windfall” pricing by sellers and eventual resistance by buyers
HOTTEST LUXURY MARKETS WORLDWIDE
(Based on year-over-year growth in sales of luxury properties, 2016 vs 2015)
1. Toronto ON
2. Victoria BC
3. San Francisco CA
4. Austin TX
5. Charleston SC
For the complete report click HERE, and an interview with Chris Kapches, Chief Executive Officer of Chestnut Park Real Estate media may contact: Patricia Best, Chief Communications Officer, Peerage Capital, 416 356 7901, email@example.com
About the report
Christie’s International Real Estate produces an annual report on luxury real estate sales trends, based on an analysis of market data from 100 of its affiliates around the world. This report, “Luxury Defined: An Insight into the Luxury Residential Real Estate Market,” covers the period from January 1 to December 31, 2016. Toronto’s Chestnut Park Real Estate is the Toronto and area exclusive affiliate of Christie’s International Real Estate.
About Christie’s International Real Estate
Christie’s International Real Estate is an invitation-only affiliate network comprised of the world’s most proven and qualified real estate specialists in the luxury residential sector. The company has offices in New York, London, Hong Kong, Los Angeles, Palm Beach and Moscow, and has 135 global affiliates with 32,000 real estate professionals in 45 countries. For additional information about Christie’s International Real Estate, please visit www.christiesrealestate.com.