Luxury real estate in Metro Vancouver’s two most desirable areas more than doubled in price since 2005, driven by overseas buyers, says Royal LePage survey
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The average price of an luxury home in Point Grey or West Vancouver has increased 135 per cent over the past decade, according to the national Royal LePage Carriage Trade Luxury Properties Report, released May 12.
In a survey of its real estate advisors, Royal LePage found that in the region’s most expensive and internationally desirable neighbourhood of Point Grey, the average price of a 2,500-square-foot luxury detached house on an 11,500-square-foot lot rose from $3.4 million in 2005 to just over $8 million in 2015.
In the second-most toney area, West Vancouver, the average price for a luxury 3,400-square-foot home on an 18,000-square-foot lot went up from $2.6 million in 2005 to $6.1 million in 2015.
The report said that, when looking at the characteristics of typical luxury homebuyers in the region, 93 per cent of BC respondents said the most common buyers were a couple with children living away from home (64 per cent) or at home (43 per cent). In terms of age ranges, 38 per cent of respondents said that the age of the primary decision-maker in the purchase was most frequently between 45 and 54, and another 38 per cent said they were usually 55-64.
Some 83 per cent of the BC real estate advisors surveyed believe that luxury property sales activity has increased since January 2015 and 76 per cent believe activity will continue to increase over the remainder of 2016.
Want more stats on Vancouver luxury real estate? Read Sotheby’s International Realty’s January 2016 report here
The survey also examine advisors’ opinions on the role that foreign buyers – those who live primarily overseas – plays in the luxury real estate market.
“We believe international interest is a significant factor driving [luxury home] price increases in the area, as foreign buyers view Vancouver as a ‘dream city’, as it is so beautiful. When visiting the region, they instantly fall in love,” said Jason Soprovich, real estate agent with Royal LePage Sussex.
Seventy-nine per cent of advisors polled said that overseas purchases of BC real estate have increased further since January 2015. The results suggested that buyers from China dominated these purchases, with 95 per cent of BC advisors selecting China as one of the top three countries from which buyers originate.
Across Canada, 66 per cent of real estate advisors believe foreign buyer activity has increased in their region since 2005. Almost a quarter (24 per cent) of respondents said they believe that 25 per cent or more of luxury properties in their area are purchased by foreign buyers. More than half of the advisors polled (51 per cent) said that China was the primary country generating Canadian real estate purchases. Some 60 per cent of advisors anticipate increased foreign buyer activity in their region this year (see infographic below).
© 2016 Real Estate Weekly