Vancouver luxury real estate market to get hotter despite B.C. policies: Sotheby’s
Sotheby’s International Realty Canada predicts Vancouver’s luxury housing market won’t be affected by B.C.’s new, higher tax on homes worth over $2 million.
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B.C.’s new, higher tax on the sale of homes worth more than $2 million isn’t expected to cool Vancouver’s luxury housing market, according to a report from Sotheby’s International Realty Canada.
Instead, Sotheby’s predicts demand will continue to get hotter for luxury homes, especially those worth more than $4 million in desirable neighbourhoods, according to its spring outlook released Thursday.
“Luxury home sales in Toronto and Vancouver will continue to defy gravity this spring,” Sotheby’s International Realty Canada CEO Brad Henderson said in a statement.
Sotheby’s uses the $4-million mark for luxury homes in Vancouver where the average price of a detached house hit $2.9 million on the west side and $1.2 million on the east side in January.
In the first two months of 2016, $1-million home sales in Vancouver have already increased 23 per cent over this period last year, according to the report.
Sotheby’s anticipates the market-cooling measures the province announced February in its 2016 budget – namely, an increased property transfer tax for homes priced over $2 million – won’t negate the strong demand resulting from limited supply of detached homes, low interest rates and international demand, specifically from China.
In fact, the agency expects more bidding wars and fewer days on the market for detached homes.
Not surprisingly, Sotheby’s predicts that affordability will be a “critical concern.” In order to try to address the problem for those who can’t drop $4 million on a place to hang their hat, the province eliminated the property transfer tax for purchases of new homes worth less than $750,000.