April 26, 2010
Canada’s Real Estate Market Grew by 5.2% in 2009
Did you know Canada was in 12th place internationally in terms of real estate market growth? Canada posted a 5.2% year over year gain in 2009. Those are respectable numbers, especially during an economic downturn, but they pale in comparison to the top markets. Hong Kong was in first place with a 27.6% gain in prices during 2009, followed by China at 25.%, Israel at 21.3%, and Australia at close to 13.6%, according to a Frank Knight Frank LLP survey of global housing markets. Prices in Hong Kong and Asia have been driven upward by a “massive injection of liquidity into the economy by the Chinese government’s fiscal stimulus package,” said Knight Frank economist Liam Bailey. A Mainland Chinese buyer set a world record price for a condominium in Hong Kong last October, paying $57 million (U.S.) for a 6,000 square foot property, or more than $9,000 per square foot. In Toronto, an average new condominium sold for about $475 per square foot last year. Toronto’s market is much more sedate in comparison, but tell that to frustrated buyers caught in the middle of bidding wars. Canada’s performance has actually been more Steady Eddy than bullet train. Analysts say this has been positive for the economy as it avoids wild swings. In the United States, the market continues to flounder, with prices falling by 3.1% last year as a bottom has yet to be reached. However, U.S. existing home sales jumped by 6.8% in March according to reports released Thursday, beating expectations of a 5% gain.
