The definition of “luxury home” varies widely across the country, according to a Sotheby’s International Realty Canada report released this morning.
Top Tier Trends Report: A Comparative Survey of Canada’s Luxury Real Estate Market found that not only do the criteria vary, but the price points defining luxury in each city are considerably different.
“In examining the top tier of Canadian real estate in this manner, we are able to provide insight into previously unexplored market nuances, property characteristics and critical buyer information,” said Ross McCredie, president and CEO of Sotheby’s.
At first glance, Vancouver doesn’t appear to be on the high end of the scale – until you take into account price per square foot.
The study revealed that average luxury home entry prices and size in Canada’s major metropolitan centres are:
- Toronto and Calgary: $2 million, 3,500 square feet ($571 per square foot)(except Toronto North: 8,000 square feet);
- Vancouver: $2.8 million, 3,500 square feet ($800 per square foot); and
- Montreal: $3.5 million, 5,000 square feet ($700 per square foot.
The report showed that the cities also vary considerably in terms of preferences in such categories as architectural styles, interior and exterior fittings and neighbourhoods.
Sotheby’s found that in Victoria and Salt Spring Island, luxury homes ranging from 2,500 to 3,800 square feet cost in the range of $1 million to $2 million.
The report revealed that buyers of luxury homes:
- are more likely to pay in cash and use mortgages as part of an overall investment strategy;
- have two-person incomes of $100,000 to $500,000 per year or more;
- are more likely to own secondary or vacation property; and
- are most often in the 40- to 50-year-old age range, except in Calgary, where buyers are most often in the 35- to 40-year-old category.
