While other countries are experiencing a slowdown in luxury real estate, Canada has just secured the top spot of the world's hottest property according to a recent report.
Commercial property agency Knight Frank has released a latest report on world wealth which reveals Canada having the fastest pace in prime property price growth at an average rate of four to 14 times.
The Huffington Post reported that topping the list is Vancouver as the region saw as much as 24.5 percent increase annually in prices for luxury properties. Toronto also made it to the list at No. 12 with an average annual increase of 8 percent.
The growth in prime properties in Canada is mainly driven by investors trying to take advantage of the lower loonie in acquiring more real estates in the country. This plus the shortage of supply amid higher demand boost the strong performance of Vancouver area, according to the report. The region saw a record home sales in February as earlier reported.
Other cities completing the top five in Knight Frank's list are: Sydney (14.8 percent), Shanghai (14.1 percent), Istanbul (13 percent) and Munich (12 percent).
Meanwhile, RBC's report, as Realty Today recently covered, warned that price increases in Vancouver and Toronto are making it "dangerously unaffordable" to own a home in these regions.
"Any further deterioration in the affordability of single-detached homes would entrench these segments as 'luxury' forms of housing in Vancouver and Toronto, available only to wealthy households," RBC said per The Huffington Post.
Also, as housing supplies dwindle, some professionals are recommending to increase the tax by 1.5 percent on vacant properties in Vancouver. Realty Today relayed that according to reports, the proposal aims to encourage homeowners to rent out their second-homes if they want to be exempted from the surtax. Consequently, it will help increase the housing stock.
