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Photo: realtor.ca<\/a><\/em><\/p>\n Toronto luxury home prices were among the fastest rising in the world last quarter, but a closer look at recent activity shows the Ontario Fair Housing Plan is likely putting a damper on price growth, industry consultancy Knight Frank suggests.<\/p>\n Compared to a year ago, luxury home prices in Toronto soared 20.7 per cent in Q2, according to Knight Frank\u2019s Prime Global Cities Index<\/a>, trailing only the annual growth of 35.6 reported in Guangzhou, China.<\/p>\n But placing second on a list of 41 luxury markets around the world from Sydney to Paris doesn\u2019t fully reflect recent trends.<\/p>\n \u201cAt first glance the rate of 20.7 [per cent] annual growth suggests a level of resilience,\u201d reads a Knight Frank release including the index.<\/p>\n \u201cBut quarterly figures show a slowdown,\u201d Knight Frank continues.<\/p>\n On a quarter-over-quarter basis, Toronto luxury home prices were up 5.1 per cent in Q2, fifth fastest overall for that timeline.<\/p>\n But during the first quarter segment, prime prices surged by a steeper 8.5 per cent over the previous three-month period.<\/p>\n \u201cQuarterly figures for Toronto suggest the new foreign buyer tax is having an effect on luxury price growth,\u201d writes Knight Frank, which generally considers luxury, or \u201cprime,\u201d real estate to represent to the 5 per cent of a market value-wise.<\/p>\n The foreign-buyer tax, which was applied to the entire Greater Golden Horseshoe, not just Toronto, was just one of the 16 measures that make up the Fair Housing Plan (announced in April) which also brings expanded rent control to the province and more.<\/p>\n Meantime, prime residential real estate prices in Vancouver, the other big Canadian city where foreign homebuyers are subject to a tax of 15 per cent, appear to be picking up steam once again.<\/p>\n Annual price gains clocked in at 2.1 per cent last quarter putting the market 21st overall, but Vancouver led all cities in terms of quarterly appreciation at a rate of 7.3 per cent.<\/p>\n In the first quarter, three-month price appreciation only registered at 1.5 per cent.<\/p>\n