Owning a luxury home in Vancouver has become a lot more expensive in the last 12 months. Housing prices have soared by 25% according to research by Knight Frank.
For comparison, there was only a 2.4% increase in New York, a 15% increase in Sydney, and a modest 1% increase in London.
The average price for a single detached home in Vancouver exceeded $1.2 million CDN ($900,000) in 2015.
The sudden increase in prices has led the Royal Bank of Canada to warn that the city’s housing market is displaying “increasing signs of over-heating.”
The rapid increase in home prices was helped along by record home sales which were up 28% in 2015 compared to 2014. Many of those sales were led by foreigners who have flocked to the city in recent years.
Vancouver is now home to 25,300 millionaires, 720 multi-millionaires, and 262 residents with fortunes valued at more than $30 million.
The rapid increase in housing prices is angering long-time residents who are being priced out of their own homes.
— Tim Jang (@timjang) March 1, 2016
— DAVINDER SINGH (@antipanchain) December 21, 2015
Much like New York City and other high-priced areas, the biggest problem is the lack of development in comparison to the number of people looking for homes.
As demand continues to outweigh supply, prices are likely to continue their upward drive.