Toronto affiliate Chestnut Park Real Estate says shortage of available properties is keeping market "turbocharged"
TORONTO, May 12, 2016 /CNW/ - Toronto is the world's second hottest market for luxury real estate, and Victoria is right behind in third place, according to a new report released today by Christie's International Real Estate and Canadian affiliate Chestnut Park Real Estate of Toronto, a Peerage Realty partner company.
Auckland, New Zealand had the world's biggest sales growth in the luxury category in 2015, with a 63 per cent increase over the previous year. Toronto's luxury market, which in absolute size is much larger, grew by 48 per cent, while Victoria posted the third-largest increase out of 100 markets surveyed worldwide.
The definition of "luxury real estate" varies by market, but for Toronto (in 2015) it's defined as properties worth $3 million (U.S.) and above. The average worldwide starting point for luxury real estate is $2.2 million (U.S.).
"Toronto's turbocharged luxury market continues to be a function of fairly short supply and steadily increasing demand," says Chestnut Park Real Estate CEO Chris Kapches. "Just as we're seeing in all other segments of the market, the number of available luxury properties is being outpaced by the numbers of buyers anxious to snap them up."
Luxury homes sell faster in Toronto than any other city in the world, with deals closing in an average of 28 days, compared to the global average of 195 days on the market.
The report says skyrocketing home prices and record-breaking luxury sales volumes that captured headlines worldwide in recent years abated somewhat in 2015 and early 2016. While 2015 started at the same breakneck speeds that characterized 2014, volatile stock markets and related geo-political uncertainty caused international luxury real estate market growth rates to finally begin to slow.
Despite all that, Canada remains an attractive country for luxury property buyers.
"Strong governmental, banking and investment systems, favorable migration trends, leading educational institutions and stable employment have all caused our market to defy the decline that other marketplaces are experiencing in terms of sales volume and average prices," Kapches said.
In Canada, upward price pressures in key cities like Toronto and Vancouver are having ripple effects in secondary markets including Collingwood and Hamilton.
"We're seeing an explosion in Collingwood and Hamilton where people are purchasing homes for a third of the price in Toronto and starting businesses in retail space that is less expensive as well," says Kapches, noting that in October a home in Hamilton listed by Chestnut Park drew 17 offers and ultimately sold for $200,000 over asking price.
HOTTEST LUXURY MARKETS WORLDWIDE
(Based on year-over-year growth in sales of luxury properties, 2015 vs 2014)
- Auckland, New Zealand (64% increase)
- Toronto (48% increase)
- Valencia, Spain
- San Francisco
- Jackson Hole, Wyoming
- Costa Smeralda, Sardinia
- Portland, Oregon
About the report
Christie's International Real Estate produces an annual report on luxury real estate sales trends, based on an analysis of market data from 100 of its affiliates around the world. This report, "Luxury Defined: An Insight into the Luxury Residential Real Estate Market," covers the period from January 1 to December 31, 2015. Toronto's Chestnut Park Real Estate is a Canadian affiliate of Christie's International Real Estate.
About Chestnut Park Real Estate
Established in 1990, Chestnut Park delivers a superior real estate experience for buyers, sellers and agents. Serving the most desirable neighbourhoods in Toronto as well as the recreational markets of Muskoka, Collingwood and Prince Edward County, Chestnut Park focuses on exemplary customer service rooted in a deep and thorough understanding of the markets it serves. Chestnut Park, a Peerage Realty Partners firm, is proud to be a Canadian affiliate of Christie's International Real Estate, giving Chestnut Park customers true global exposure whether buying or selling. Chestnut Park Real Estate is the recent Winner of the 2015 Christie's International Real Estate Affiliate of the Year Award.
About Peerage Realty Partners
Peerage Realty Partners, transacting over $4 billion annually in sales, offers an innovative alternative for independent real estate firms. Peerage embraces the entrepreneurial spirit of our Partner firms by encouraging autonomy while providing human and financial resources to accelerate growth. Our Partners include: Chestnut Park Real Estate, Fifth Avenue Real Estate Marketing Ltd. and Baker Real Estate Inc.
About Christie's International Real Estate
Christie's International Real Estate is an invitation-only affiliate network comprised of the world's most proven and qualified real estate specialists in the luxury residential sector. The company has offices in New York, London, Hong Kong, Los Angeles, Palm Beach and Moscow, and has 136 global affiliates with 32,000 real estate professionals in 45 countries. For additional information about Christie's International Real Estate, please visit www.christiesrealestate.com.
SOURCE Chestnut Park Real Estate
Image with caption: "Chestnut Park Real Estate Limited - an affiliate of Christie’s International Real Estate (CNW Group/Chestnut Park Real Estate)". Image available at: http://photos.newswire.ca/images/download/20160512_C3010_PHOTO_EN_689044.jpg
Image with caption: "Chestnut Park Real Estate Limited - an affiliate of Christie’s International Real Estate (CNW Group/Chestnut Park Real Estate)". Image available at: http://photos.newswire.ca/images/download/20160512_C3010_PHOTO_EN_689046.jpg
Image with caption: "Chestnut Park Real Estate Limited - an affiliate of Christie’s International Real Estate (CNW Group/Chestnut Park Real Estate)". Image available at: http://photos.newswire.ca/images/download/20160512_C3010_PHOTO_EN_689048.jpg
For further information: For further information and to arrange interviews with Chris Kapches of Chestnut Park Real Estate, contact: Natasha Beynon - Veritas Communications, Beynon@veritasinc.com - 416-640-4660