A new report identifies Victoria as the second-hottest luxury real estate market in 2016.
ChristieB次元官网网址檚 International Real Estate ranked Victoria just behind Toronto in terms of being the fastest growing luxury real estate market in the world. According to the report, Victoria B次元官网网址渨itnessed its best year ever for luxury home salesB次元官网网址� in 2016.
So what accounts for the outcome? The reason for VictoriaB次元官网网址檚 booming luxury market lies across the Salish Sea.
B次元官网网址淭he provincial capital saw a significant uptick from affluent international buyers who were deterred by nearby VancouverB次元官网网址檚 new 15 per cent tax on overseas purchases and opted for Victoria instead,B次元官网网址� it said.
While the definition of a luxury homes varies according to region, the average starting price of a luxury home is $2.1 million, down slightly from last yearB次元官网网址檚 $2.2 million, according to ChristieB次元官网网址檚.
Local realtor Manpreet Kandola, however, suggests that the report might be guilty of hyperbole, when it calls Victoria the second-hottest luxury real estate market.
B次元官网网址淚n my humble opinion, I donB次元官网网址檛 think that is very accurate,B次元官网网址� he said. When it comes to luxury real estate, everything is relative, he said.
B次元官网网址淚n the grand scheme of things, we are still undervalued globally, even in Canada, especially if you consider a house in East Vancouver, Burnaby or Richmond,B次元官网网址� he said.
Average homes in those communities cost up to $2 million, while such a figure could fetch waterfront property in the Greater Victoria area, he said.
The Greater Victoria area is an undervalued B次元官网网址渘on-brainerB次元官网网址� for buyers that offers B次元官网网址渢remendous security and safety,B次元官网网址� he added.
Looking at the larger picture, ChristieB次元官网网址檚 report appears to be broadly consistent with a report from SothebyB次元官网网址檚 International Realty Canada published in March. Tracking real estate figures across CanadaB次元官网网址檚 four largest real estate market, SothebyB次元官网网址檚 predicts that Toronto would continue to lead the pack in sales of homes worth over $1 million, while home sales in Vancouver would normalize.
The luxury segment of the Vancouver market B次元官网网址� which includes homes valued over $4 million B次元官网网址� suffered even more dramatic declines, dropping 68 per cent from a year ago to 43 units, according to the report.
Other reports meanwhile broadly identify Victoria as a location for what some media reports have called B次元官网网址渁ffordability refugeesB次元官网网址� B次元官网网址� individuals who are seeking to escape the high real estate prices of the Lower Mainland.
This said, reports like ChristieB次元官网网址檚 might further stoke the general sentiment that the Greater Victoria area is becoming unaffordable.
Kandola feels their pain. B次元官网网址淭he general public is upset that prices have increased so much,B次元官网网址� he said. B次元官网网址淚B次元官网网址檓 very sympathetic for people who want to get into the market. ItB次元官网网址檚 getting tougher and tougher.B次元官网网址�
However, he also noted that Victoria has been here before. In the 1960s, SaanichB次元官网网址檚 Gordon Head was considered the suburbs. Now, the suburbs have moved to the West Shore.
B次元官网网址淲e all want to live hereB次元官网网址nd the secret about Victoria is out,B次元官网网址� he said.
