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Toronto and Vancouver condo units in the $1-2 million price range have attracted a healthy proportion of buyers over the past few years, according to the2018 RE/MAX Spotlight on Luxury Report.

Christopher Alexander, executive vice president and regional director of RE/MAX INTEGRA Ontario-Atlantic Canada Region, credited two notable demographics for the luxury sector’s vitality.

“Many Canadian Baby Boomers saw the strength of the real estate market over the past two years as an opportunity to cash-in, downsize and upgrade into the luxury market for retirement,” Alexander explained.

“We’re also seeing an emerging trend of Millennials entering the lower end of the luxury condo market, as they tap into their inheritance to invest in this popular property segment.”

Toronto saw its luxury condo sales rise by a relatively modest 2% year-over-year. Meanwhile, Vancouver’s had a 6% increase.

Toronto’s priciest condo sold for $11.5 million this year, representing a significant 44% upward spike from $8 million in 2017. Vancouver’s most expensive condo sold for $11.7 million, growing by 34% from 2017’s $8.7 million.

On the other hand, the single-detached housing market continued to labor under pressure from the foreign buyers’ tax. Luxury single-detached sales went down by 37% in Toronto and 31% in Vancouver.

“The foreign buyers’ tax has impacted overseas activity, opening more opportunities for local buyers to enter the luxury market,” RE/MAX of Western Canada executive vice president Elton Ash said.

“As a result, local buyers are driving demand for luxury condos going into 2019, which is welcome news for developers in major city centres looking to build more properties.”