Toronto’s Q1 leap only fell short of a 36.2-per-cent annual gain recorded in Guanzhou, a large Chinese port city, and an increase of 22.9 per cent tracked in China’s capital, Beijing. However, looking at luxury home price growth over a six-month time frame, Toronto inches up to the second slot. From September 2016 to March this year, prime Toronto home prices soared 13.5 per cent, only short of Guangzhou’s rise of 20.2 per cent, according to Knight Frank.
“The big story on the North American continent is the acceleration of prices in Toronto — across all price bands,” Knight Frank’s report containing the index performances reads.
The Toronto luxury housing market outperformed the market in Vancouver, the only other Canadian city on the 41-entry list, “by some margin,” the report notes. In Vancouver, until recently Canada’s hottest major market, luxury prices climbed 7.9 per cent in March, on a year-over-year basis.
As of the Q4 2016 index reading, Vancouver luxury residential real estate was already on a downward trajectory while Toronto’s high-end housing market was on the upswing. In December, Toronto luxury home prices were up a slightly more restrained 15.1 per cent over a year prior, putting it in the number-five spot, just ahead of Vancouver, which placed sixth for posting year-over-year price growth of 14.5 per cent during that period.
Toronto’s current strength comes at a time when flagging Asian markets are regaining momentum, suggests Kate Everett-Allen, head of international research with Knight Frank. “An Asian revival might be overstating it, but we are certainly seeing the region’s key cities of Hong Kong and Singapore rise up the rankings following years of lackluster price growth,” she says in a statement.
In particular, Hong Kong and Singapore are on the upswing, posting annual gains of 5.3 per cent and 4 per cent, respectively, enough to earn the former the 13th spot and the latter the 15th place.