A new report out by Royal LePage says the Greater Vancouver luxury property market leads the country with a 10-year price increase of 125%.
Regional Manager Allan Stewart says the report found foreign buyers are a significant factor driving price increases.
“There is no question that we are seeing a lot of investment from offshore buyers and buyers from the US. I think our low Canadian dollar is having a really dramatic effect on that. Our product is discounted by, I think we have a 74-cent dollar today, so that is a 25% discount when you are looking at comparable properties across the border.”
Stewart says foreign buyers are driving up prices, and the market isn’t expected to cool any time soon.
“We haven’t seen any signs of it on the ground. We expect things to continue well into 2016 unless we see an increase in the value of the Canadian dollar the for sale sign seems to be holding true.”
The LePage report says the average luxury single family home in Vancouver went for $2.7 million in 2005. That’s jumped to almost $6-million today.
The report found one luxury home in Point Grey going for $3.4-million 10 years ago is listed for around $8-million today.
Stewart says there is no indication the market will cool anytime soon.
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