Vancouver and Toronto are known for their expensive real estate but compared to other cities around the globe, home prices in Canada’s two hottest cities markets aren’t as staggering.
Single-family homes in Vancouver and Toronto have an average price-per-square-foot (APPSF) of $824.47 and $833.20, respectively. These rates are well below the most expensive city worldwide to buy property — Kowloon in Hong Kong, which has an APPSF of $3,570.23, according to a report from Century 21 Canada, published today.
“While prices are no doubt expensive, we really rank in the middle of the pack when compared to other global cities,” Brian Rushton, Century 21 Canada’s Executive Vice-President, writes in the report.
The real estate company collected its data through a survey, conducted earlier this month, where its brokers from 75 cities in 27 countries submitted the APPSF of a single-family home and condominium.
Vancouver’s price-per-square-foot (PPSF) for a single-family dwelling isn’t far behind San Francisco’s price of $934.96, which ranked 6th out of all cities surveyed.
"The West Coast of the North American continent has always been, certainly in most recent years, very popular, whether that's Vancouver, Seattle, San Francisco, right down to San Diego or in Los Angeles,” Rushton tells BuzzBuzzNews.
Meantime, Toronto’s APPSF was similar to Tokyo’s, where the APPSF is $775.72.
Montreal was also included in the study, ranking lower than Vancouver and Toronto with an APPSF of $519.51.
The cheapest city to buy property out of all markets surveyed is Maracaibo-Zulia in Venezuela, with an APPSF of $10.16.
Compared to a similar Century 21 Canada survey conducted 10 years ago, Rushton says the PPSF has experienced a major upswing in the Canadian markets studied.
"It’s a pretty dramatic difference between 2007 and 2017, especially in the cities we assessed: Toronto, Montreal and Vancouver. Affordability factors in the Canadian marketplace have continued to be a bit of a problem,” says Rushton.
The survey also examined the APPSF of condos in all cities, and once again Hong Kong lead the pack.
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In Vancouver and Toronto, the APPSF of a condo is $1,172.80 and $833.20, respectively. Montreal’s APPSF comes in well below the other Canadian markets at $538.75.
Even though condos tend to have less square footage than a single-family home, Rushton says overall, condos have a higher PPSF in most of the markets surveyed.
In the Canadian markets studied, Rushton notes demand for condos has been booming, hiking up prices.
"There's been a lot of pressure on the condo market because it's about the only way first-time buyers can get into a market. They can afford to essentially buy something that is $400, $500, $600 per square feet. Even though the PPSF is quite substantial they're getting into the market,” says Rushton.