In some parts of Canada, the luxury market has had a bumpy ride, including a major drop-off in activity in 2017. However, a new report from RE/MAX suggests that luxury home sales may be on the rise. In Toronto, for example, luxury home sales rose throughout the first 10 months of 2019 and experts are suggesting the trend will continue elsewhere.
Foreign Buyers Return
According to the report, one indicator of housing market positivity is the return of foreign buyers—particularly those from mainland China—to some of Canada’s luxury markets, including Vancouver and the Greater Toronto area.
After 2017’s introduction of the foreign buyer tax, the luxury market saw a significant drop-off. Prior to the introduction of the tax, Chinese investors made up approximately 60 per cent of home purchases over $6 million.
Luxury Demand Is on the Upswing
In their report, RE/MAX cited figures from the Economist Intelligence Unit, which predicts that the number of high-net-worth residents in Canada could double over the next ten years, stoking demand for luxury properties.