LUXURY SPOTS STILL DRAW HOMEOWNERS
Engel & Völkers market report says prime locations for ‘lifestyle homes’ in Ottawa remain in demand
Canada’s residential real estate market is picking up momentum — even in some of its priciest neighbourhoods. Between ultrahigh-net-worth baby boomers, professional couples, diplomats and tech-savvy millennial entrepreneurs, the demand for luxury properties remains strong, says a recent Engel & Völkers market report.
In Ontario, neighbourhoods in Ottawa and the GTA continue to attract homebuyers who are willing to pay a premium to be close to good schools, local shops, recreational trails and other amenities.
“The minute trendy restaurants come in, that’s when an area starts turning around,” said Anita Springate-Renaud, an Engel & Völkers broker of record in Toronto.
The report states the three most expensive prime locations in the GTA are downtown Toronto, East York and Burlington/Hamilton. Downtown condos are attracting young buyers at one end where roughly $500,000 buys roughly 500 square feet; and ultra-highnet-worth individuals at the other end, where luxury condos in Yorkville, Forest Hill and King Street West run $2 million or more.
East York is popular among families who appreciate city living and are willing to pay $1 million or more for a “detached fixer-upper,” said Springate-Renaud, who grew up in the area and recalls a time when similar homes hovered at $60,000.
Families who find themselves priced out of the Toronto market are gravitating west towards Hamilton and Burlington, where $800,000 buys a large single detached home.
“Colloquially known as Toronto’s Brooklyn, Hamilton continues to develop a strong arts and culture-based economy, fuelled by a vibrant music scene, grassroots galleries and national historic sites,” states the report. Burlington is capturing the attention of buyers with its “waterfront location, convenient distance to Toronto, affable all-town feel, greenery and focus on protecting heritage and rural space.”
Luxury is a subjective term, meaning different things to different people. Engel & Völkers broker John King, based in Ottawa, is quick to point out that the luxury market is considered the top 10 per cent of sales volume. In Ottawa, the three most expensive prime locations are McKellar Park/Westboro/Island Park, Glebe/Old Ottawa South and New Edinburgh/ Lindenlea.
“When we say luxury market, it’s defined by price point … and price is determined by size and geographic location or street,” said King.
“What creates stronger neighbourhoods is schools, amenities, public transit, and access to the Ottawa River Parkway — more lifestyle things.”
If you want to live in one of Ottawa’s top neighbourhoods, it will cost you $800,000 or more at a time when the average home price is just under $500,000. Though King has seen an evolution of neighbourhoods since starting out in real estate in 1993, the Glebe is a constant favourite, appealing to “rich millennials” and “professional families” who want to live a very urban life.
“You may or may not get a garage, and not a lot of living space, but you have good schools, you’re close to the Rideau Canal and you can walk to downtown Ottawa,” he said.
McKellar Park is a relative newcomer to the luxury market, gaining in popularity as original homeowners downsized or retired and younger buyers moved in, driving new amenities and restaurants. New Edinburgh continues to attract “power couples and power families,” mainly foreign diplomats, professionals and business owners. Rockcliffe Park, with average home prices starting at $1 million, is Ottawa’s most prestigious neighbourhood, home to “many diplomatic residences, embassies, high commissioners, foreign government representatives and private schools.”
The majority of luxury homes are what King calls “lifestyle homes” – homes designed for entertaining with contemporary finishes that include ultra-modern minimalist designs, large glass windows and smart home features.
“Luxury is a state of mind,” he said.
“What luxury is to you may be different for me … Often times you will get luxury finishes at a luxury price because it’s the affluent who can afford the neighbourhood.”