Toronto’s house prices jumped higher than any major city in the world
Toronto has emerged as the city with the fastest rising house prices in the year to the end of June, according to the latest prime global cities index survey by Knight Frank.
Home prices in the capital of Ontario, Canada, rose by 8.2 per cent in the second quarter, its strongest showing since 2008, and are up 27 per cent in the past 12 months.
Knight Frank’s quarterly Prime Global Cities Index tracks the performance of residential prices across “key global cities” (of which there are apparently 46) using data from its global research network.
“Prime prices across 46 cities increased at an average rate of 8.2% in the year to June 2021, up from 4.6% in March,” writes the U.K.-based real estate consultancy.
“Toronto leads this quarter’s results recording annual prime price growth of 27 per cent, driven by strong buyer appetite and low inventory levels.”
Between the first and second quarters of 2021 alone, prime house prices shot up a whopping 15.5 per cent in Toronto, far and away above the next cities on the list (Shanghai, Guangzhou, Seoul and Miami.)
It’s important to note that, while all types of home prices are rising at record levels in Toronto as the city recovers from COVID, the Knight Frank index only measures “prime” properties, which they define as “the most desirable, and normally most expensive, property in a defined location.” In Toronto, detached single-family homes fit this definition.
“Until now, the pandemic-fuelled house prime boom was most evident in the mainstream market but the prime sector has now surged ahead,” reads the report.
“Interestingly, the proportion of cities registering prime price growth has increased only marginally to 76 per cent. Instead, it’s the scale of growth amongst the top-performing cities that is behind the index’s acceleration.”
Toronto is certainly showing price growth across both the mainstream and prime sectors, and this trend is expected to continue well into latter 2021.
As for why, Knight Frank points to a combination of low interest rates combined with easing travel rules, a surge in “safe haven purchases” and “an overall reassessment of lifestyles and commuting patterns.”
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