The Wall Street Journal reports that the International Monetary Fund express concern yesterday about real estate prices in Hong Kong, which are up 30% this year. Concern is that a bubble may be brewing.
Prices for luxury homes are at an all-time peak in Hong Kong despite a tightening of lending requirements increasing the required down payment on luxury homes to 40%.
A little closer to home, a RE/MAX Ontario Atlantic Canada report released yesterday is showing some pretty strong numbers in the Canadian luxury market.
"Twelve months of healthy home buying activity have clearly been crammed into five short months," Michael Polzler, executive vice president of RE/MAX Ontario-Atlantic Canada.
Toronto has seen a boost in sales of "entry-level" luxury homes in the $1M-$1.5M price range, driven primarily by Bay Street banking bonuses. There have been over 1,700 sales at $1M+ this year in the Toronto area.
