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VictoriaBԪַs luxury market in a world of its own

Report ranks Victoria as the worldBԪַs second fastest growing luxury real estate market
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A report finds Victoria the second hottest market for luxury properties like this Sea View Road in Saanich. It sold for $6.1 million in 2011.

A new report identifies Victoria as the second-hottest luxury real estate market in 2016.

ChristieBԪַs 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 BԪַwitnessed its best year ever for luxury home salesBԪַ in 2016.

So what accounts for the outcome? The reason for VictoriaBԪַs booming luxury market lies across the Salish Sea.

BԪַThe provincial capital saw a significant uptick from affluent international buyers who were deterred by nearby VancouverBԪַs new 15 per cent tax on overseas purchases and opted for Victoria instead,BԪַ 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 yearBԪַs $2.2 million, according to ChristieBԪַs.

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.

BԪַIn my humble opinion, I donBԪַt think that is very accurate,BԪַ he said. When it comes to luxury real estate, everything is relative, he said.

BԪַIn 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,BԪַ 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 BԪַnon-brainerBԪַ for buyers that offers BԪַtremendous security and safety,BԪַ he added.

Looking at the larger picture, ChristieBԪַs report appears to be broadly consistent with a report from SothebyBԪַs International Realty Canada published in March. Tracking real estate figures across CanadaBԪַs four largest real estate market, SothebyBԪַs 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 BԪַ which includes homes valued over $4 million BԪַ 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 BԪַaffordability refugeesBԪַ BԪַ individuals who are seeking to escape the high real estate prices of the Lower Mainland.

This said, reports like ChristieBԪַs might further stoke the general sentiment that the Greater Victoria area is becoming unaffordable.

Kandola feels their pain. BԪַThe general public is upset that prices have increased so much,BԪַ he said. BԪַIBԪַm very sympathetic for people who want to get into the market. ItBԪַs getting tougher and tougher.BԪַ

However, he also noted that Victoria has been here before. In the 1960s, SaanichBԪַs Gordon Head was considered the suburbs. Now, the suburbs have moved to the West Shore.

BԪַWe all want to live hereBԪַand the secret about Victoria is out,BԪַ he said.



Wolf Depner

About the Author: Wolf Depner

I joined the national team with Black Press Media in 2023 from the Peninsula BԪַ Review, where I had reported on Vancouver Island's Saanich Peninsula since 2019.
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