Photo: James Bombales
Move over London and Paris – the hottest metro for luxury home sales growth in 2014 was Toronto. According to a new report by Christie’s International Real Estate, Toronto topped a ranking of 10 global cities. The Canadian city recorded the highest growth in luxury home sales in 2014 with a 37 per cent spike over 2013.
The acceleration was a significant surge over the 4 per cent boost it experienced the year before, making Toronto the only city in the top 10 to see a faster pace of sales in 2014 than in 2013.
“2014 was the Toronto market’s second-best year on record. If there had been more inventory, the record would easily have been shattered,” said Justine Deluce of Chestnut Park Real Estate, in the report.
Low levels of low-rise inventory is behind the boost in luxury sales with “relatively average” homes in the city now seeing price tags of $1 million to $2 million as demand remains high. And with houses in short supply, luxury condos priced $1 million or more also saw a sales boost in 2014.
What are affluent buyers looking for in Toronto? “Luxury buyers aim to be more discreet, less ostentatious. There is a trend toward architecture that blends into the topography of the area, not about everything being overtly expensive,” said Deluce.
Toronto’s number one placement put it above last year’s hottest city, San Francisco, which ranked second this year. In 2013, San Francisco experienced an incredible 62 per cent surge in luxury home sales, but 2014 saw “strong but not explosive” growth at 19 per cent.
Los Angeles, New York, and London saw luxury sales plateau in 2014 after experiencing double-digit growth in 2013. Meanwhile, Hong Kong saw luxury homes sales fall 33 per cent in 2014. Transactions also fell in Dubai at a rate of 19 per cent.
The report also features a luxury index, which ranks the 10 cities based on top sales prices, average prices per square foot and number of luxury sales. Toronto scored dead last, while London took the top spot.
Here’s a look at the top hottest markets and most luxurious markets:
10 Hottest Luxury Markets
2. San Francisco
5. Los Angeles
6. New York
10. Hong Kong
2. New York
3. Hong Kong
5. Los Angeles
6. San Francisco