Canada’s luxury residential real estate market has seen a notable increase in foreign buyer activity over the last 10 years, according to a survey by Royal LePage.
When asked about activity over the last decade, 66% of real estate advisors believe foreign buyer activity increased in their region since 2005. Almost a quarter (24%) of advisors surveyed believe that 25% or more of luxury properties in their area are purchased by foreign buyers. Over half of the advisors polled (51%) cited China as the primary international region generating real estate purchases in Canada. Looking forward, 60% of advisors anticipate increased foreign buyer activity in their region this year.
The survey also explored trends in luxury real estate sales volumes. According to the report, 67% of real estate advisors stated that luxury property sales activity has increased since January 2015. Current activity is in line with the long-term trend, as the survey also found that 80% of advisors surveyed stated that activity in this category has increased since 2005.
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The survey found that the majority (84%) of advisors believe that luxury properties are used as primary residences, with almost all (97%) characterizing buyers as couples, and a majority (66%) maintaining that luxury buyers have children living at home. In line with use as a primary residence, 74% cited “detached home” as the most desirable luxury property type. The most commonly cited feature that buyers look for was “popular neighbourhood” (53%), followed by “size of house” (42%).
“Downsizing” was the most common reason cited for sellers listing their luxury properties (selected as the number one reason by 66% of advisors). In a related finding, survey respondents said the most common age range of sellers was 55 to 64 (53%), while the most common age range of primary decision makers looking to purchase a luxury property was 45 to 54.