Two years ago, Vancouver topped international real estate consultancy Knight Frank’s global ranking of the hottest luxury real estate markets.
Now, the city placed dead last.
“Vancouver… sits at the bottom of our rankings as upmarket areas such as West Vancouver have seen a marked slowdown in sales and prices as a result of the raft of measures introduced in February’s Budget,” Knight Frank explains in its latest Prime Global Cities Index report.
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BC’s 2018 budget included a provincial speculation tax and a 5-percent hike to the existing foreign-homebuyer tax. The 20-percent tax was also expanded beyond Metro Vancouver to include the Fraser Valley, Capital Regional District, Nanaimo Regional District and Central Okanagan.
Each quarter, Knight Frank rates 43 upscale global real estate markets, looking at the top 5 percent of properties.
In the third quarter, luxury home prices took an 11.2-percent hit compared to the previous year, according to the index. Prices were off 8.1 percent from a half year ago and down 4.8 percent from the second quarter.
The other Canadian city on the index, Toronto, was ranked seventh. With annual price growth of 8.5 percent, Canada’s largest city placed behind Auckland and ahead of Moscow. “Toronto continues to see prime prices rise in its exclusive areas of Rosedale and Yorkville,” Knight Frank notes.
The top city for luxury real estate last quarter was Singapore. Prime real estate prices in the city-state surged 13.1 percent in 12 months.
Singapore’s strength is “driven by the limited availability of prime properties and a strong market outlook in the first half of 2018,” says Knight Frank.