Town & Country: A Profile of Luxury Real Estate across Ontario and Canada inShare
As reported by Royal Lepage Leading Edge
Canada’s luxury residential real estate market has seen a notable increase in foreign buyer activity over the last ten years, according to a survey of real estate advisors released this month in the Royal LePage Carriage Trade Luxury Properties Report.
Carriage Trade is an exclusive real estate service that Royal LePage offers to market distinguished homes in Canada to discerning buyers from around the world.
“While the impact of foreign buying on Canada’s overall residential real estate market is small, we see it growing in importance in the luxury market,” said Phil Soper, president and chief executive officer, Royal LePage. “Canada’s stable political and financial systems, along with a tradition of cultural tolerance and openness to immigration and diversity, make our country an ideal destination for wealthy international purchasers looking to invest in real property. Recently, a lower Canadian dollar has made this proposition even more attractive.”
250 real estate advisors specializing in the sale of luxury properties across Canada were polled on a variety of topics including regional luxury market trends, buyer/seller demographics, foreign buyer activity and unit sales. Separate interviews were also conducted to validate the survey findings and acquire additional insight on each market’s overall drivers and performance.
Here are a few findings from the study that specifically pertain to the luxury home marketin Ontario:
•The Ontario luxury housing market has remained strong and highly active throughout 2015 and 2016 thus far
•Price increases over the past decade have been driven in part by an extreme lack of inventory in the region, especially in the Greater Toronto Area
•Toronto’s typical luxury property purchaser can be described as a successful local buyer looking to upsize and secure a new family home or an international buyer who wants to enter the Toronto market
•The top three most commonly cited factors motivating foreign buyers to buy in Ontario are: (1) a stable real estate market; (2) a stable financial system; and (3) a stable political system
•Similar to the other regions studied, nearly all respondents said that typical buyers in their area are couples, and more than two thirds of luxury buyers in Ontario have children living at home
•The average age of the primary decision-maker looking to make a luxury purchase is between 45-54, while a younger demographic between 35-44 ranks second
•Looking ahead, almost two thirds of advisors surveyed believe that luxury property unit sales will increase for the remainder of 2016, with 10 per cent predicting that increases will be significant
•60 per cent of advisors polled anticipate luxury purchases by foreign buyers to increase in 2016
Here are a few findings from the report that profile the luxury home market in Canada at large:
•Over half advisors polled cited China as the primary international region generating luxury real estate purchases in Canada
•Nearly all luxury buyers in Canada are couples, the majority (66 per cent) of which have children living at home.
•The most commonly cited feature that luxury buyers in Canada look for is “popular neighbourhood” (53 per cent), followed by “size of house” (42 per cent)
•“Downsizing” is the most common reason cited for sellers listing their luxury properties
•The most common age range of sellers is 55 to 64 while the most common age range of primary decision makers looking to purchase a luxury property is 45 to 54
For a final note on the luxury home market, Phil Soper adds: “Real estate ownership can satisfy both housing needs and investing goals. While market conditions and economic outlooks matter, we have found that luxury property ownership is predominantly driven by the desire to create a happy family home.”
If you’re in the market for a luxury residence, make sure to check out The Faris Team’s Prestigious Properties listings.