Luxury condos surge in value

Well, this is definitely a must read for those of you who have been investing or looking to invest in the luxury condominium category. In this article, I will provide you the updates for both Toronto and Montreal because the market is on the rise.


Let us dive into the numbers, according to a luxury housing market report shows that condo markets in Canada’s two largest cities appreciated to 10.2% and 8.4%, respectively. In other words, the average price in Toronto reached $2,268,571, and in Montreal it rose to $1,295,401.


Although there has been an increase in value for the condo’s, the market for luxury detached houses in Toronto faced with a significant 40% drop in sales. During the aforementioned period, luxury condominium has an average of $2,680,064. Despite Greater Vancouver’s luxury housing market dropped by 1.7%, but the cost is still the highest with a value of $5,751,928.


According to the report, it states that :

Among Canada’s five largest cities, Greater Vancouver was the only city to post a decline. Ever since the introduction to cool the city’s real estate market, it has caused the luxury houses trade to decline in the past two years since 2016. Luxury home values have dipped but remain remarkably steady as many homeowners refuse to sell at what they perceive as a discount price. Exasperating soft demand,  with many Chinese nationals in Canada, an important luxury buyer demographic, have seen restrictions placed on their ability to transfer wealth to Canada.”


Following up we have Calgary’s luxury housing market with a boost of 3.2% at $2,012,676 over the past 12 months ending January 31,2019. Despite having a 3.2% boost the luxury condo remains flat at 0.5% with a price tag of $903,106. Good news for Ottawa as the detached house rose 5% in value hitting it at a $1,811,716 following by the city’s condo value at $1,005,549. If you’re staying in this town and you have some cash laying around you can take this as an opportunity to increase your portfolio.


A sales representative from a big real estate firm said that with a low inventory on hand has caused Toronto’s luxury condo market demand to increase which leads to more sales. With only a few listings available in the larger suites has resulted in multiple offers last year.


Moving on to Montreal, measures brought in by governments in Ontario and British Columbia have curbed foreign buyer activity in Toronto and Vancouver. Which leads to an increase in demand for luxury property in Montreal, but this demand is mostly seen within the downtown condo market. However, most of the demands are for presale condo units where most of the investors will buy a few units in order to take advantage of the discount.


Are you looking to invest in property or even just to get the latest news and tips about real estate investing? If you’re still reading this tune with me here. Because there will be more interesting reads coming up for you.

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