Toronto and Victoria, B.C. are the world’s “hottest” markets for luxury homes as investors flock to Canada for its political and economic stability, according to a new report from Christie’s International Real Estate.
Christie’s CEO Dan Conn told BNN in an interview Wednesday that even with the rise in million-dollar-plus home sales, Toronto is cheap compared to other luxury markets. “I consider Toronto, even with the heat at the upper end of the market, it is still a comparative bargain on the global map,” he said.
Investors interest in Canadian real estate shows no sign of cooling anytime soon, Conn said.
The desire for luxury home sales doesn’t seem to be slowing either, according to the report, which saw signs of sustained growth in the high-end market.
Foreign buyers aren’t the main source of heat in Toronto’s market, and recent efforts by the provincial government to crack down on foreign speculators are unlikely to cool the market, said Conn. Last month, Ontario Premier Kathleen Wynne unveiled measures – including a 15 per cent tax on real estate speculation by non-residents.
“Effectively you are squeezing one end of the balloon and air is going into another end,” he said.
The report, titled Luxury Defined, looked at data from over 100 brokerages across the globe, revealed homes that are seven figures and over peaked last year at records levels.