Until recently, Vancouver held the number one spot in sales for $1 million-plus real estate, but according to a recent Sotheby’s report, that spot is now held by Montreal.
Montreal was recently named the leading city for Chinese real estate investment by Juwai.com, a leading Chinese real estate portal. According to Juwai.com, the biggest factor for Montreal becoming the newest hotspot for Chinese buyers is the implementation of foreign buyers taxes in Vancouver and the Greater Toronto Area.
“In face of the Government of B.C.’s February 2018 implementation of a 30-point plan for housing affordability, coupled with the cascading effects of governmental policies implemented since 2016 to overcome the region’s affordability challenges, the $1 million-plus single family home market saw a significant pullback in activity, while the condominium and attached home markets remained resilient,” wrote the report authors.
In Vancouver, overall, residential real estate sales over $1 million decreased 19% year-over-year to 1,939 units in the first six months of the year, and homes in the $4 million-plus sales range decreased 47% to 111 units, prompting speculation that consumer confidence in this market segment is waning. The most dramatic slowdown was in the single-family home market, which moved well into a buyer’s market as sales over $1 million and $4 million fell 36% to 885 homes sold, and 55% to 86 homes, respectively.
Toronto has long been a close rival to Vancouver’s top tier market, but it too has seen supplanted. Sotheby’s report continues, “Toronto saw even bigger declines than Vancouver, with home sales down 46% year over year in the $1 million-plus market.”