2025 Mid-Year Canadian Luxury Real Estate Market Report
MID-YEAR 2025
10635 Wood Bay Ridge Road
Engel & Völkers Vancouver
Introduction
Welcome to the Engel & Völkers 2025 Mid-Year Canadian Luxury Real Estate Market Report. On-the-ground intel from local Engel & Völkers Canada experts, combined with market data, informs our analyses and serves as the basis for trends and forecasting. Homes over $1 million throughout the first half of the year, as listed on the MLS, were evaluated. The result is a residential property and market report for Halifax, N.S.; Montréal, Que.; Ottawa, Ont.; Toronto, Ont.; and Vancouver, B.C.
National Overview
Mid-luxury real estate proves resilient as $1 million to $1.99 million segments remain the backbone of the market
Across Canada’s key luxury markets — Ottawa, Toronto, Vancouver, Montreal, and Halifax — properties priced between $1 million and $1.99 million continue to lead transaction volumes and hold their value. Ottawa showed an increase of two per cent year-over-year, while other cities showed notable stability, with Toronto’s and Montréal’s average prices matching 2024 levels. Halifax saw a modest decline of just one per cent. Though the limited number of transactions makes this less statistically significant. Overall, the data highlights the enduring strength of real estate as a long-term investment, even amid broader economic uncertainty.
Ultra-luxury condos are in high demand as ultra-high net worth boomers downsize
In Toronto, condos priced over the $5 million mark are transacting with surprising velocity — and four of the seven sales in the first half of 2025 closed in under 30 days, well below the market average. These units, often priced between $5 and $7 million, cater to a distinct buyer: ultra-high-net-worth individuals seeking long-term wealth preservation and exclusivity.
These buyers prioritize scale, privacy, and design, often eschewing one-bedroom units or mixed-use towers in favour of boutique buildings with large, customizable suites. In Vancouver, while overall high-end condo sales remain sluggish, the same principle applies: rarity, prestige, and architectural distinction are essential for movement at the top end.
Ottawa homes from $1 million – $1.99 million up 2% year-over-year.
Immigration caps create slowing demand from new international buyers
Canada’s federal immigration policy changes, specifically the new immigration caps, are softening international demand for luxury properties. Over the past decade, international immigration has been a major driver of luxury sales, particularly among investors and wealthy newcomers. The latest population growth numbers (effectively flat for early 2025) reflect this policy shift. Conversely, international buyers purchasing property as non-residents — often as investment holdings or secondary residences — remain subject to ongoing federal and provincial taxes on foreign buyers. The federal Prohibition on the Purchase of Residential Property by Non-Canadians Act remains in effect through January 1, 2027, further restricting non-resident activity at the top end of the market.
110
10635 Wood Bay Ridge Road Engel & Völkers Vancouver
Gray Willow Place Engel & Völkers Ottawa
Neighbourhood segmentation is the new normal
Across many Canadian markets, the first half of 2025 has been marked by stagnation, characterized by elevated inventory, longer days on market, and cautious buyer sentiment. Yet beneath this overall inertia, microbursts of activity emerged in specific neighbourhoods and price bands. Well-priced, move-in-ready homes in desirable school zones or lifestyle enclaves continue to attract multiple offers, while comparable properties just streets away may sit idle. These pockets of momentum reveal how hyper-local the market has become.
Regional divergence emerges as market patterns split across provinces
While Toronto and Vancouver are experiencing a rebalancing, particularly in the condo market where rising inventory is giving buyers more choice, other cities like Montréal, Ottawa and Halifax are showing resilience. Montréal continues to post price growth, fueled by both local and out-of-province buyers. Ottawa remains active, with local move-up buyers driving demand for luxury properties. Halifax’s market has built up its inventory levels over the past 12 months, but it is still a seller’s market, albeit with a cautious buyer’s mentality.
10635 Wood Bay Ridge Road Engel & Völkers Vancouver
Halifax
In 2025’s first half, the number of units sold priced between $1 million and $1.99 million increased by 9.2% compared to 2024’s first half.
Welcome to Halifax
In the first half of 2025, Halifax’s real estate market demonstrated continued resilience despite pockets of uncertainty. Average home prices edged upward across most price bands while inventory remained tight in the conventional market. At the same time, new listings increased across all luxury tiers, suggesting growing seller confidence as interest rates eased and demand remained stable.
While the market still favours sellers overall, a noticeable shift in buyer psychology has taken hold. Many buyers remain cautious, with lower confidence fueled by inconsistent government policy, surprise tariffs and Nova Scotia’s controversial provincial deed transfer tax, rising from five per cent to 10 per cent in April 2025 for out-ofprovince purchasers. This tax has already impacted interest from seasonal buyers and student-housing buyers from Ontario and British Columbia.
Despite these headwinds, the first half of 2025 has seen robust activity in key luxury segments. Halifax’s premium housing market saw a delayed but determined spring surge, with buyer momentum expected to continue in the summer months, recovering from a late start to the season.
The luxury market continues to be driven by well-maintained, detached homes priced between $1 million and $1.5 million. These properties, especially those that are turnkey and in sought-after locations, remain fiercely competitive, often attracting multiple offers. Conversely, homes requiring repairs or that are priced above market expectations are experiencing longer timelines and price adjustments.
The $1 million to $2 million price band remains the core of Halifax’s luxury market, accounting for the highest volume of sales above $1 million. Between January and June 2025, 118 residential properties in this segment changed hands — a 9.2 per cent increase over the same period in 2024. Average sale prices held steady, ranging from $1.13 million to $1.27 million, reflecting continued demand for homes offering space, privacy and proximity to nature.
“It’s a seller’s market with a buyer’s market mentality. Prices have crept up, $2 millionplus listings are growing and buyers are engaging more strategically than ever.”
Donna Harding License Partner Engel & Völkers Nova
Scotia
8286 St. Margaret’s Bay Engel & Völkers Nova Scotia
Condominium sales in this tier remained limited, with only eight units sold by June 2025. Average prices fluctuated from $1.05 million to $1.4 million.
Activity in the $2 million to $3.99 million segment noticeably expanded. Residential listings climbed 6.5 per cent yearover-year to 42 units, while sales increased from five to 10 transactions. Prices in this bracket ranged from $2.05 million to $2.76 million. While buyers remain cautious, the presence of higher-value listings on the market signals that sellers see renewed opportunity in this space.
The top end of the market remains highly exclusive. By the end of June 2025, there were 10 new listings above $4 million, but no completed sales. This mirrors 2024, when only three transactions occurred in this category throughout the entire year. The segment’s ultra-low turnover highlights its niche appeal and price sensitivity.
The broader market continues to show segmentation. Properties under $600,000 still favour sellers. The $600,000 to $1 million range remains balanced. Above $1 million, buyers have room to negotiate, but only when homes are not move-in ready, well-located or strategically priced. Halifax also faces an unusual inventory imbalance. The overall supply remains tight, at just 2.9 months, which is well below the four to six months typically considered a balanced market. The entry-level condo segment is oversupplied, particularly for units priced between $350,000 and $500,000. Despite elevated rental rates, buyer activity in this tier has lagged, largely due to affordability constraints and diminished consumer confidence.
Property Spotlight
536 Ketch Harbour Road
Donna Harding & David Light . Engel & Völkers Halifax
Perched on 1.92 acres with 633 feet of ocean frontage, this 5 bedroom, 4.5 bath coastal masterpiece offers nearly 5,000 square feet of elevated living with sweeping views of Halifax Harbour and the open Atlantic. Purposefully designed for modern coastal living, the home features soaring ceilings, oversized steel-framed windows, a stunning chef’s kitchen with custom cabinetry a butler’s pantry and seamless flow into open-concept dining and living areas with a propane fireplace and custom built-ins. Upstairs, the primary suite offers a private retreat
with a spa-inspired ensuite, while secondary bedrooms enjoy balcony access and ocean views. The lower level offers versatile space, featuring additional bedrooms, dens and a large family and games room.
Located just 20 minutes from downtown Halifax in an exclusive enclave, the landscaped grounds include aggregate walkways, a fenced vegetable garden and expansive decks made for outdoor living. Premium mechanical systems and low-maintenance finishes complete the package.
Advisor’s Commentary
This property aligns with this year’s delayed spring market, arriving in June 2025 and listed at $2,500,000. This property first sold at the height of the pandemic, just as Halifax’s luxury market began to shift. At a time when highend homes often lingered, this home sold quickly, signalling the rising demand for lifestyle-driven properties offering space, privacy and a connection to nature.
With over eight properties currently listed above $2 million, the area has become a magnet for discerning buyers — many of whom are relocating or upgrading to match their lifestyle aspirations. A property here isn’t just about the home, it’s about belonging to one of Halifax’s most prestigious, design-forward communities.
This move-in-ready oceanfront home reflects the rise of Halifax’s luxury market, where top-tier listings are selling fast, and demand for quality has never been stronger.
Engel & Völkers predicts Halifax residential properties over $1 million will see a 3% price increase in the second half of 2025.
Market Outlook
Halifax’s luxury market is expected to see a summer resurgence as buyers re-engage. Properties between $1 million and $2 million will remain the dominant force, offering attractive value compared to other Canadian cities. Waterfront and lifestyle properties in areas such as Chester, Lunenburg, and Baddeck are likely to continue drawing high interest from affluent buyers seeking a second home or a coastal retreat.
With interest rate cuts expected in the latter half of the year and a growing pipeline of high-end new listings, the Halifax market is poised for a strong second half. Yet stability, both economic and political, will be essential to maintaining buyer momentum and growing buyer confidence.
1766 Highway 304 Engel & Völkers Nova Scotia
NEIGHBOURHOOD RADAR
Halifax
West End
North End
Downtown Dartmouth
Bedford
Montréal
Sales of homes over $4 million jumped 69% in 2025’s first half compared to the same period last year, signalling a strong rebound.
Welcome to Montréal
In the first half of 2025, Montréal’s real estate market showed signs of cautious optimism. Following a slower 2024 defined by affordability constraints and volatile buyer sentiment, 2025 marked a shift toward stability, especially in the luxury and ultra-luxury segments. While average prices stayed relatively flat across most categories, the volume of transactions rose meaningfully, and new listings climbed sharply, suggesting renewed seller confidence and more strategic buyer activity.
Despite the Bank of Canada’s continued monetary restraint through 2025’s second quarter, buyers adapted to interest rates in the five – six per cent range. This stabilization spurred qualified buyers to return to the market, especially those transacting in cash or with substantial equity. The volume of casual browsing diminished, but motivated buyers stayed active, particularly in the luxury segment.
In the $4 million-plus bracket, Montréal posted 22 detached home sales from January through June 2025, increasing by 69 per cent compared to 13 transactions recorded during the same period in 2024. However, average prices saw a slight dip, from an average of $5.76 million in early 2024 to $5.09 million in 2025, driven by a larger number of sales and a more balanced distribution of high-end property types.
Condo transactions in the $4 million-plus range doubled, rising from two to four, highlighting a modest rebound in luxury vertical living, despite municipal taxation on non-occupied properties dampening some investor activity. Meanwhile, new listings in this tier decreased, down 8.5 per cent from 118 in January to June 2024 to 108 in the same period in 2025.
The $4 million-plus ultra-luxury segment remains steady but more discerning. Best-in-class listings still command strong interest, but buyer expectations are sharper and overpricing leads to stagnation.
The core luxury residential market priced from $1 million to $3.99 million saw robust momentum in 2025, with year-todate unit sales up 37.7 per cent, from 1,041 in 2024’s first
“Montréal’s $1 million to $4 million market remains active and resilient. Buyers are highly focused, prices are holding firm, and success comes down to precision in pricing and presentation.”
Patrice Groleau License Partner Engel & Völkers Montréal
half to 1,434 in the same period this year. Average prices in this band remained consistent, at $1.47 million in early 2025 versus $1.47 million in early 2024, reflecting a slight softening due to higher supply and negotiated outcomes.
Inventory rose significantly as well for homes priced $1 million to $3.99 million. New listings climbed 30.8 per cent yearover-year, from 2,537 in January to June 2024 to 3,320 in 2025, particularly in the detached and townhome segments. Real estate advisors attribute this to a combination of interprovincial migration from Ontario, lifestyle shifts and the normalization of remote work.
The $1 million to $3.99 million tier has become a market health barometer. High demand, tempered pricing and increased inventory suggest a more balanced playing field. For sellers, success hinges on strategic pricing and presentation. For buyers, clarity on priorities and pre-approval remain essential in a competitive environment.
Montréal’s condo market is undergoing a reset. While overall unit sales rose 21.6 per cent year-over-year across both price brackets, pricing in the $1 million to $3.99 million tier softened slightly to $1.35 million in 2025’s first half from $1.37 million at the same time in 2024. The slowdown is most pronounced in the investor segment, as both federal and Québec-specific regulations, including foreign buyer restrictions and vacancy taxes, have discouraged speculative purchasing. Still, end-user demand remains strong for high-end condos offering location, design and amenities. In this landscape, well-located, move-in-ready condos continue to perform. Investors have pulled back, but discerning primary buyers are still active, especially those downsizing from larger homes or seeking pied-à-terre options.
Property Spotlight
5639 Av. Christophe-Colomb
Félix Jasmin . Engel & Völkers Montréal-Outremont
BEDROOMS
This recently listed loft offers a striking example of Montréal’s industrial architectural heritage, featuring exposed steel beams, concrete block walls and exceptional ceiling height. Skylights and heated concrete floors contribute to its utilitarian appeal, while the open-plan configuration presents flexibility for various layout possibilities.
The mezzanine-level workspace overlooks the main living area, creating a visual connection between levels. A wrought-iron staircase leads to a second-floor primary
suite, reinforcing the space’s structural character. The south-facing loggia functions as either a terrace or winter garden and the exclusive roof access opens potential for a private outdoor extension.
Situated across from Parc Boyer and within one block of Parc Laurier, the location underscores the ongoing desirability of this neighbourhood.
Advisor’s Commentary
Montréal’s real estate market has experienced a notable shift in 2025. After months of slow movement, many listings that had stagnated are now seeing renewed activity. Buyer interest has re-emerged across the city, transforming once-overlooked properties into high-demand listings and ushering in a wave of record-breaking sales. This uptick in momentum signals a rebound in market confidence, particularly in central neighbourhoods where inventory remains scarce. Nowhere is this more evident than at the border of the Plateau and Petite-Patrie, where a rare loft offers both scale and architectural distinction.
With its blend of industrial and mid-century design, soaring ceilings, radiant concrete floors, brick and wood details and skylit interiors, it stands out as a singular opportunity in the core. Tucked behind an unassuming façade, this property is emblematic of the type of hidden gem today’s buyers are eager to uncover.
This is a rare and exceptional offering in a market that has nearly doubled in value over the past eight years.
Engel & Völkers forecasts a 2% increase in average sale prices for residential properties over $1 million by year-end.
Market Outlook
With more inventory expected in the third quarter, a stronger finish to 2025 is anticipated. If more high-quality listings come to market, a record-setting fourth quarter in the luxury segment could materialize. Interest rate stability and possible late-year cuts could unlock additional demand. In the luxury sector, international and interprovincial migration, especially from Ontario and Europe, continues to support pricing and sales.
The broader market remains segmented, but the luxury category is seller-favoured. The conventional market is more balanced, with pockets leaning toward buyers. Montréal’s relative affordability, cultural appeal and inventory growth make it one of the most compelling luxury markets in North America.
632 Clarke Avenue Engel & Völkers Montréal
NEIGHBOURHOOD RADAR
Montréal
Westmount
Outremont
Rosemont
Town of Mount Royal Le Plateau-Mount Royal Saint-Laurent
Lasalle
East Island | Hochelaga Maisonneuve
Villeray | Ahuntsic
Ottawa
Properties priced between $1 million and $1.99 million accounted for 10.8% of all real estate transactions in the first half of 2025. This is up from 8.6% from 2024.
Welcome to Ottawa
In the first half of 2025, Ottawa’s residential real estate market demonstrated signs of renewed strength following a tepid start to the year. Market activity accelerated significantly in May, coinciding with a post-election boost in buyer confidence. It was the city’s strongest May in terms of sales since the pandemic, with local Engel & Völkers Ottawa advisors having their best month ever. As of the end of June, total residential and condo sales in the $1 million-plus segment were up 31.2 per cent year-overyear, underscoring Ottawa’s role as one of Canada’s most resilient luxury markets amid broader national volatility.
Residential home prices remained stable across most segments, with no dramatic swings observed. Buyers remained cautious and increasingly price-sensitive. Unlike the bidding wars of recent years, 2025 saw extended decision timelines and increased scrutiny of floor plans, renovation needs and neighbourhood trends. Advisors noted a shift toward what they are calling “micro-bursts,” pockets of intense activity in high-demand areas, where properly valued, well-located homes attracted multiple offers. Yet across the broader market, the days-on-market lengthened, and negotiation margins widened.
The $1 million to $1.99 million segment continued to dominate Ottawa’s luxury landscape. New residential class listings in this range rose 47.8 per cent year-overyear, excluding condos, with strong uptake among local move-up buyers and government professionals relocating to established enclaves like Westboro and The Glebe. With an increase in inventory, residential sales
also climbed 32.6 per cent compared to the same period in 2024, reflecting resilient demand when homes are priced strategically.
“Ottawa’s luxury market continues to display healthy momentum. Prices are steady, buyers are highly discerning and strategic pricing is key. The market is fragmented, with hot spots shifting by street, school zone or lot. Trusted guidance is essential to understand true value, whether buying or selling.”
John King
License Partner
Engel & Völkers Ottawa
On the pricing front, residential properties in this tier recorded a modest 2.2 per cent increase in average sale price year-to-date, with limited month-to-month variation. Condominium class properties, though fewer in number, posted a more pronounced five per cent gain, driven by constrained supply and selective, higher-value transactions. Overall, prices in this segment remained stable, with modest increases concentrated in low-inventory pockets, particularly within the city’s small but active luxury condo market.
In the $2 million to $3.99 million segment, activity was notably robust. New listings surged by 96 per cent compared to first half of 2024, driven by sellers regaining confidence in market conditions. On the demand side, buyers in this tier displayed selectivity, but overall sales in the first half of 2025 rose 73.5 per cent year-over-year for residential class homes, not including condos. Prices in this range peaked in April, with some of the 20 homes sold reaching just under $3 million, particularly in heritage districts and new custom builds in central Ottawa.
The ultra-luxury segment, residential class homes valued at $4 million and above, remained niche and highly exclusive. Inventory increased modestly, with 19 new listings in the first six months of 2025, down from 17 during the same period in 2024. Only one publicly recorded sale occurred in this bracket, consistent with the three transactions seen across all of 2024. The highest sale price in 2025 remains below $5 million.
The market took off in the second week of May, shortly after the federal election on April 28, with a noticeable rebound in listings and buyer inquiries. Sales for the entire Ottawa market increased by 10 per cent in June, the highest level since the pandemic began. Traffic at open houses was steady, comprised of qualified buyers, which suggests strong fundamentals. With the spring market seemingly delayed this year due to the threat of tariffs and the election, it is expected that the spring market will continue into July this year.
Property Spotlight
39 Winding Way
Mat Valois . Engel & Völkers Ottawa
BEDROOMS 4
BATHROOMS 5
An exemplar of contemporary waterfront living, 39 Winding Way commands attention with its tailored design, curated materials and serene natural setting. Listed at $4,999,000, this 4 bedroom and 5 bathroom residence pairs architectural restraint with richly layered detail — custom millwork by Cedar Ridge and wide-plank flooring by Logs End bring warmth and texture to the expansive, light-filled interiors. Floor-to-ceiling windows deliver uninterrupted views of the water, while discreet privacy film ensures seclusion without sacrificing sightlines. At the heart of the home, an entertainer’s kitchen with Fisher & Paykel appliances opens into generous living and dining zones,
LIVING AREA
3,500-5,000 sq. ft.
LISTED AT $4.9 million
ideal for hosting with ease and elegance. The primary suite offers a private sanctuary, anchored by a spa-calibre ensuite featuring marble heated floors.
A saltwater pool and multiple terraces extend the living experience outdoors, surrounded by lush, professionally landscaped gardens. A custom scent system subtly reinforces the atmosphere of comfort and luxury.
Set on one of Ottawa’s most prestigious streets, 39 Winding Way is more than a residence — it is a statement in refined waterfront design.
Advisor’s Commentary
The highest recorded sale in this enclave was $2.95 million in 2018, positioning this listing as a new benchmark. Turnover in the neighbourhood, particularly along the waterfront, is exceptionally limited, making comparable sales data scarce and reinforcing the rarity of this opportunity. Constructed in 2022, the home represents the first infill of its size and calibre to come to market in recent years. Its scale, architectural sophistication and modern construction distinguish it.
To help contextualize its standing within Ottawa’s broader luxury waterfront market, notable recent sales include 123 James Cummings Avenue, which sold for $4,000,000 in 2024, and 6125 James Bell Drive, which sold for $4,257,000 in the same year. With its premium location, exceptional design and scarcity of comparable inventory, 39 Winding Way emerges as one of the city’s most significant offerings.
Ottawa’s luxury market is coming into its own — buyers want timeless design, smart layouts and lifestyle features. Areas like Manotick and Rockcliffe are setting a new standard.
Engel & Völkers forecasts a 4% increase in average sale prices for properties over $1 million by year-end.
Market Outlook
Growth in the second half of the year is forecasted, supported by a steady inflow of qualified buyers and a return to more balanced conditions. While the overall $1 millionplus band is expected to remain a buyer’s market, signs of stabilization are beginning to emerge.
The market is likely to experience limited new inventory in the short term, particularly as developers continue to face financing constraints and construction delays.
This could potentially place upward pressure on prices in 2026. Meanwhile, Ottawa’s stable employment base and ongoing transit expansions will continue to support longterm real estate values, particularly in urban cores and along commuter corridors. With national attention focused on the turbulence in Toronto and Vancouver, Ottawa’s steady performance positions it as a reliable destination for longterm investment.
5808 Red Castle Ridge Engel & Völkers Ottawa Central
NEIGHBOURHOOD RADAR
Ottawa
Westboro
Glebe
Manotick
Toronto
Toronto
ultra-luxury home prices surge by $1 million in 2025’s first half, averaging $14.8 million in the $10 million+ segment.
Welcome to Toronto
In the first half of 2025, Toronto’s luxury real estate landscape revealed a two-speed market. While sales volume and price growth moderated or declined across much of the $1 million to $4 million range, the city saw robust activity at the ultra-luxury tier, particularly among properties priced above $10 million. The data points to a market that is stratifying, where affluent, equity-rich buyers continue to transact with confidence at the top, while conventional segments face inertia due to qualification constraints and policy impacts.
By early spring, listings swelled across the board, particularly in detached homes between $1 million and $2 million. Despite increased supply, sales volume lagged, suggesting buyers were still on the sidelines, awaiting rate relief. While February hinted at an early spring surge, market momentum faltered again in March amid tariff and macroeconomic volatility.
In the $1 million to $1.99 million segment, sales activity remained stable but subdued, mirroring pricing trends that held flat year-over-year. Detached homes in this tier averaged $1.37 million, the same as in 2024. Average prices for two-bedroom condos dipped slightly compared to the first half of 2024, to $1.25 million, while onebedrooms showed a modest gain, averaging $1.29 million. High inventory, long days on market and tight mortgage qualification rules contributed to a wait-and-see mentality among buyers.
The resale condo market continued to outperform new construction, largely due to the disparity in value.
With new developments priced at $1,250 to $2,000 per square foot, resale inventory offered stronger perceived value at $700 to $1,400 per square foot. Developers, affected by high construction costs and government levies, paused launches or pivoted to purpose-built rentals to capitalize on GST exemptions, as oversupply and a lack of affordability hindered absorption.
“For sellers, thoughtful pricing is more essential than ever, this is not the market of 2021. For buyers, particularly within the $1 million to $4 million range, conditions are compelling: inventory is elevated, negotiation opportunities are abundant and when confidence returns to the market, it tends to do so swiftly.”
Anita Springate-Renaud License Partner Engel & Völkers Toronto Central
New Listings
Yet the ultra-luxury condo segment told a different story. In the first half of 2025, nine condos priced above $5 million sold, four of them within 30 days. This compares to 12 throughout 2024, but only three sold within 30 days.
Boutique developments like 1 Roxborough West, 2 Post Road and 138 Yorkville drove ultra-luxury condo activity. Larger floor plans, concierge-level privacy and exclusivity made these properties desirable among downsizers from Forest Hill and Rosedale seeking turnkey luxury.
Sales in Toronto’s $10 million-plus segment more than doubled in the first half of 2025, rising from three transactions last year to seven this year. Not only did volume increase, but the average sale price in this ultraluxury category also climbed by eight per cent year-overyear, signalling growing confidence among high-net-worth buyers. Adding to the momentum, days on market dropped
Average Sold Price
by 43 per cent, underscoring the urgency and decisiveness with which these buyers are transacting.
While the ultra-luxury segment gained traction, listings in the $1 million to $4 million band swelled. Detached listings between $1 million and $1.99 million peaked at 693 in June. Sellers unwilling to compromise on price increasingly opted to rent out their homes rather than sell.
Property Spotlight
GPH26 - 280 Howland Avenue
Jason DeLuca . Engel & Völkers Toronto Central Yorkville
A masterclass in boutique luxury, GPH26 at Bianca Condos captures the essence of refined city living. This rare northwest corner suite is available for sale at $1,499,000 and features 2+1 bedrooms, 3 bathrooms and 1,215 square feet of meticulously customized interior space. Completed in 2023, Bianca is a boutique condominium celebrated for its striking geometric architecture and distinct floorplans between the north and south sides. GPH26 stands apart as the largest suite and highest price point ever listed for sale on
the north side of the building. It is a singular, first-of-its-kind residence. Positioned on the north side, it offers sweeping northwest views and a layout that blends generous scale with architectural elegance. Every detail is elevated through premium finishes, setting a new benchmark for the building. GPH26 delivers the quiet confidence of a home with the effortless grace of luxury condominium living, redefining what it means to live beautifully in the heart of the city.
Advisor’s Commentary
GPH26 brings together every element a discerning buyer desires. Wide-plank oak floors, marble countertops, Brizo fixtures and heated bathroom floors offer a refined base, while custom track lighting is ideal for art collectors. Over the past decade, Toronto has seen rising demand for large single -level condos, especially from baby boomers downsizing from 4,000–10,000 square foot homes. With 1,215 square feet of beautifully upgraded space, GPH26 answers that call. Located in The Annex, a family-friendly neighbourhood with top -rated schools, it also suits young families seeking luxury and location. Ten-foot ceilings and expansive windows frame northwest sunset views, making this penthouse a rare and elevated offering, listed at more than double the city’s average condo price.
Toronto’s luxury condo market is growing as downsizers seek 1,000–4,000 square foot suites. GPH26 meets this demand with scale, upgrades and a family-friendly location.
489 Lakeshore Road
Engel & Völkers Toronto Central Yorkville
Engel & Völkers predicts Toronto residential properties over $1 million will see a 2% price increase in the second half of 2025.
Market Outlook
Engel & Völkers predicts that Toronto’s luxury real estate market will experience a late-year rebound. While much of the first half was marked by hesitation and excess inventory, particularly in the $1 million to $4 million segment, momentum is expected to build in the second half of 2025 as interest rates continue to decline and sidelined buyers re-engage. Activity in the freehold market is forecast to rise first, with strategic opportunities emerging for well-priced detached and semi-detached homes. As competition returns
to the freehold segment, renewed interest in the condo market is expected to follow.
Engel & Völkers advises sellers to act now to prepare listings for the fall market, when buyer activity is expected to accelerate. As more purchasers are priced out of freehold homes, attention will return to the condo market, especially large, well-located units. However, success in this segment will depend on aligning pricing with current buyer expectations.
Runnymede - Bloor West Village
NEIGHBOURHOOD RADAR
Toronto
Pocket
“As confidence gradually returns to the market, buyers and sellers are recalibrating. Strategic timing and thoughtful positioning will be key in the second half of 2025. With interest rates projected to trend downward and premium inventory gaining traction, Toronto’s real estate landscape is primed for measured growth.”
Patrice Groleau License Partner, Engel & Völkers Toronto City
The
Corktown
Vancouver
June detached sales grew by 4% year-over-year in the $1 million
–$1.99 million segment, showing signs of renewed activity.
Welcome to Vancouver
The first half of 2025 marked a decisive shift toward realism in the Vancouver real estate market. Building on the cautious optimism of 2024, transaction activity improved year-over-year, particularly in the spring, as consumer confidence stabilized. However, high listing volumes, zoning-related pricing speculation and limited demand at the top end shaped a more segmented landscape.
Detached homes remained the dominant property type across all price points, continuing to lead in listings, sales and average price. Meanwhile, the ultra-luxury market above $4 million saw limited absorption, with notable softness in semidetached homes and high-end condos. Seasonality held true with a spring peak, though the market’s delayed start suggests a potentially more active summer ahead.
The $1 million to $1.99 million range sustained its position as the most active segment. Detached homes in this bracket averaged $1.53 million to $1.57 million, holding steady with 2024 levels. Two-bedroom condos also remained resilient, with average prices between $1.23 million and $1.27 million, underscoring their enduring appeal among entry-luxury buyers.
Detached homes priced between $2 million and $3.99 million demonstrated continued strength, with June sales peaking at 244 units. New listings in this range also remained high, approaching 941 in May alone. Average prices held stable at $2.6 million to $2.72 million, reflecting the market’s underlying demand for quality inventory in desirable neighbourhoods.
In contrast, the $4 million and higher segment saw notable declines in both volume and velocity. Detached sales dropped from 56 units in June 2024 to 33 in June 2025. Listings remained elevated, but absorption rates fell sharply, with sales-to-listings ratios holding below one per cent from January to June. Condominiums in this range
“This isn’t a market driven by speculation anymore. It’s driven by life. Buyers are moving based on real needs like growing families, job changes and personal timing.
Sellers who recognize this shift and price thoughtfully, prepare their homes properly and understand the nuances of today’s buyer are the ones seeing results.”
Andrew Carros Chief Operating Officer Engel & Völkers Vancouver
Total Units Sold
exhibited minimal activity, underscoring the niche nature of this market tier. Prices ranged from $5.1 million to $5.7 million, with fewer exceptional sales driving the average.
These trends confirm several key insights. The mid-luxury segment from $1 million to $3.99 million continues to provide consistent, stable demand. Detached homes remain the preferred property type across the board. And while the ultra-luxury segment still holds long-term value, current conditions require distinctiveness, architectural excellence or unique location to drive buyer interest.
The first six months of 2025 also witnessed the full introduction of B.C.’s home-flipping tax. Although initially a concern, StatsCan data indicate that short-term flipping accounted for just 2.8 per cent of transactions from 2019 to 2021. Its overall impact on luxury markets remains minimal, though its presence underscores a broader governmental push toward long-term ownership and affordability.
Average Sold Price
$2-3.99
Property Spotlight
3577 Angus Drive
Monique Badun . Engel & Völkers Vancouver
2,861 sq. ft. LISTED AT $4.18 million
Listed at $4,188,000, the property was launched with a strategic and targeted approach, garnering immediate interest. It went under contract within just one week of hitting the market. In a neighbourhood where properties are tightly held, and new listings are few and far between, this sale stood out — not only for the rarity of the home itself but also for the speed and strength of the response. It speaks to continued demand for well-positioned, move-in-ready homes in Vancouver’s most storied residential enclave. BEDROOMS
3577 Angus Drive is a rare offering in Vancouver’s prestigious First Shaughnessy neighbourhood, celebrated for its historic character, architectural charm and enduring prestige. This 2,861-square-foot infill home, built in 1988, is situated on an expansive and exceptionally private lot — an uncommon find in a community defined by grand heritage estates. Featuring 3 bedrooms, 3 bathrooms and thoughtfully designed interiors, the home offers a refined yet low-maintenance lifestyle. Residents also enjoy access to a shared underground pool, adding a layer of leisure and exclusivity.
Advisor’s Commentary
The property was purchased for $1,190,000 in 2001, offering a clear indication of market growth over the years. Detached “infill” homes in First Shaughnessy, situated on strata lots, are rare and seldom come up for sale. The alternative would be a detached home on a full-sized lot, which typically commands significantly higher prices.
This presents a unique opportunity to enter the First Shaughnessy neighbourhood while still enjoying generous interior space and a private garden. Infill homes in the area generally range from $4 million to $6 million, whereas single-family homes in First Shaughnessy usually start at a minimum of $6 million.
What stood out was the level of interest we received so quickly. It confirmed that, despite what the broader stats may suggest, buyers are still actively looking and ready to move quickly when the right home comes along. It was a great reminder of the power of local knowledge, thoughtful positioning and timely execution.
Despite a cooling market, the swift sale of 3577 Angus Drive shows that standout homes in historic, coveted areas still command attention — even in today’s buyer-friendly climate.
3268 West 15th Avenue Engel & Völkers Vancouver
Engel & Völkers predicts Vancouver residential properties over $1 million will see a 2% price increase in the second half of 2025.
Market Outlook
Vancouver’s luxury market is expected to remain measured yet resilient, shaped by purposeful decision-making rather than speculative momentum. As we move through the second half of 2025, the market will be defined by clarity, buyers acting with intention, and sellers who must lead with strategy, preparation and precision. Successful transactions will increasingly depend on collaboration, not just with seasoned real estate professionals, but with a broader team of legal, financial and regulatory advisors who can navigate an evolving and complex landscape.
Detached homes priced under $2.5 million will continue to see strong demand, while the $3 million to $5 million bracket is likely to face more selective activity unless listings offer
architectural distinction, premium location or rare features. In the high-end condominium segment, pricing pressure and buyer hesitancy are expected to persist, especially as units priced between $1,700 and $2,200 per square foot struggle to deliver perceived value amid rising financing constraints and inconsistent finish quality.
Looking ahead, Vancouver’s real estate market is expected to remain balanced and stable. Buyers and sellers are encouraged to take a long-term view, work with experienced professionals and recognize that successful outcomes will be driven by thorough preparation, transparency and effective teamwork.
