Luxury condo sales boom, smashing records in Calgary – Sales of condos over $1 million already more than double this time last year

Luxury condo sales are booming in Calgary this year with MLS sales over $1 million already setting an all-time yearly record.

Year-to-date, until Wednesday, there have been 53 luxury condo sales in the city compared with 21 for the same period last year, according to the Calgary Real Estate Board.

The previous yearly record for most luxury condo sales was 36 in 2012.

Wynn Alex Carr, with Sotheby’s International Realty Canada in Calgary, has just sold an Eau Claire sub-penthouse condo for $2,862,500 — the second highest MLS recorded condo sale for this year. The sale closes on Friday.

“High-end buyers have refreshed confidence in Calgary’s upper-tier market and are committed to investing in Calgary’s buoyant real estate market. We are seeing more and more affluent buyers searching for that perfect piece of Calgary’s real estate — whether single-family homes or prestigious condominiums — offering exceptionally high levels of finishes,” said Carr. “People continue to relocate to Calgary for its strong business climate, cultural vibe and Calgary’s reputation for innovation and diversity. Affluent buyers are also taking advantage of continued attractive interest rates and gains in home equity.

“Our current luxury sales reflect the surge in demand. Calgary’s strong luxury condominium market performance is evident with the sale of 53 condominiums over $1 million with six selling for over $2 million for 2013. Buyers are snapping up properties in locations defined by select prime neighbourhoods or a specific luxury building offering lifestyle, walkability and easy access to downtown. This is yet another indication of Calgary’s real estate prowess as a leading economy in Canada.”

Three of the top five condo sales this year have been in the Eau Claire neighbourhood. According to CREB, up to Wednesday, the top sales were: Mission, $2,990,000; Eau Claire, $2,862,500; Mission, $2,790,000; Eau Claire, $2,580,000; and Eau Claire, $2,300,000.

The top five condo sales ever are: Eau Claire, $4,100,000, January 2011; Eau Claire, $3,700,000, October 2007; Mission, $3,290,000, July 2012; Mission, $3,190,000, November 2012; and Eau Claire, $3,050,000, January 2006.

The popularity in the luxury condo market is evident in yearly sales growth over the past decade. In 2004, there were only two sales at that price point and it jumped to six in 2005. But sales took a huge leap in 2006 with 29 transactions that year. Yearly luxury condo sales for the past few years are: 30 in 2007; 27 in 2008 and 2009; 21 in 2010 and 26 in 2011.

“We have a number of prospective buyers taking advantage of moving to the inner city,” said Richard Cho, senior market analyst in Calgary for Canada Mortgage and Housing Corp. “Its proximity to various amenities makes it an attractive place to live. We have seen the selection of luxury condos rise in Calgary, giving buyers numerous options to choose from. This coupled with rising incomes and relatively low mortgage rates has helped support demand.”

© Copyright (c) The Calgary Herald

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