Erin nicole davis
The global luxury housing market is getting even more expensive lately – and Toronto is leading the way.
According to a recent report by global real estate agency Knight Frank, growth in luxury home prices around the world overtook the mainstream market in the second quarter of 2021.
According to the Knight Frank Global Price Index (GPI), average luxury home prices rose 8.2% year-on-year between April and June, compared to 4.6% in the first three months of 2021. The world price index examines 46 city areas.
In the United States and Canada, cities recorded average luxury market price growth of 16% in the second quarter.
Unsurprisingly to anyone in the Greater Toronto Area (GTA), Toronto tops the global index; here, the prices of luxury homes have increased by 27%. According to the data, thirteen cities saw double-digit premium price growth. These results are consistent with the recent Engel & VÃ¶lkers 2021 report on the mid-year Canadian luxury real estate market, which found that the luxury market in Canada has seen unprecedented levels of growth in the first six months of 2021. .
âThe pandemic has made us all question the capacity of our current homes and equipment, [and whether we can] exist and prosper in our current properties. At a time, [COVID-19] made those who have thought about resizing to be wary of any changes, âexplains Richard Silver of Sotheby’s International Realty Canada of price growth in the luxury market.
âThe lack of products and perceived options pushes those with money to pay more, while pushing those with exceptional homes to be afraid of moving. The dearth of options always pushes prices to new highs.
In Toronto, finding housing – in the luxury market or not – is frustrating.
âThe search for high-end options continues to frustrate buyers, but at the same time it forces developers to be more creative and we see a more ‘New York rent in town, own in the city’ scenario. campaign, âsays Argent.
Shanghai, where luxury home prices rose 21% in the second quarter from the same period last year, is second on the Knight Frank GPI after Toronto. Guangzhou, China, and Seoul, Korea followed, both posting 20% ââannual growth in the second quarter of 2021. Price hikes in the three Asian cities came despite government attempts to cool the market, said The report.
Next on the list was Miami, where luxury real estate prices are as hot as the temperature. The See-and-See City has seen a 19% annual price increase in the luxury market.
Surprisingly enough, London and New York have not experienced the same level of luxury growth as other cities around the world. London saw only a 0.7% increase in base prices; However, this was the first time the city has experienced positive growth since May 2016, according to the report. Taking the penultimate place, New York recorded a drop of 3.7%. The city was the worst performing global luxury market in the first quarter.
According to the report, however, Knight Frank predicts that London and New York will fare better over the summer.
Meanwhile, Bangkok took last place, falling 6.4% year-on-year in the second quarter, the data showed. Dubai was third on the list, with a drop of 3.6%.
As for the Canadian luxury market, prices are unlikely to drop in the near future. âCanada has a worrying housing shortage and with new immigration targets it is expected to keep the housing market on the rise,â said Silver.
For those looking for a luxury home in Toronto (or anywhere), Silver says to explore all the options and base them on the lifestyle.
Houses outside of town have advantages and disadvantages, âsays Silver. âIt’s all up to you and your lifestyleâ¦ oh yeah, and affordability, if that’s a problem. Wealthy people have options, but deciding what works for you isn’t always easy. I am a pro and con list person. Explore your options and make an informed choice.
Erin nicole davis
Erin Nicole Davis is a born and raised Toronto writer with a passion for the city, its urban affairs and its culture.
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