In the first half of 2019, luxury real estate sales flourished in Montreal with property sales jumping over $4 million by triple digits, but continued to decline in Vancouver, a fresh study says.
“Canada’s top-tier real estate markets veered in separate directions,” read a report released Wednesday by Sotheby’s International Realty Canada, which tracked the number of condominiums, townhouses and detached homes sold for over $1 million and $4 million in major Canadian cities.
The agency has previously forecast Montreal as an emerging hot stop set to make new records.
In the first half of 2019, property sales in excess of $1 million jumped five percent relative to the same period last year..
Sales of properties over $4 million soared 267 per cent with 11 properties sold. Three such properties were sold in the first half of 2018.
Experts from the agency observed an rise in global buyers — a group that, according to the study, involves new Canadians, permanent residents, and investors as overseas buyers ‘ taxes in Toronto and Vancouver redirected global buyers to Montreal.However, the group still composes “a small percentage of overall top-tier sales activity” in the city, it said.
Meanwhile, in Vancouver’s formerly heated housing market, luxury property sales continued to drop due to fallout from government intervention.
The market continued to bear the burden of tightened mortgage rules, multiple governmental policies and taxes, and hesitant sellers and fickle buyers lacking motivation to commit to transactions,” the report read.
Homes sold for over $1 million fell 33 per cent to 1,308 properties, while homes sold for more than $4 million fell 34 per cent to 73 homes.
Evolving conditions in Vancouver real estate have created opportunities for prospective top-tier real estate buyers to consider housing options previously out of reach,” the report said, adding some potential buyers who were considering condos priced at more than $1 million have likely now shifted their focus to attached or detached homes instead.
Sales of condos over $1 million fell 51 per cent in the first six months of this year from 708 condos sold between January and June 2018 to 349 in the same six months of 2019.
“The continued adjustment of housing prices is expected to renew interest and activity in the future,” the report noted of Vancouver’s single family homes priced over $1 million.