Canada’s hot housing markets have prompted concerns about a bubble, increasing unaffordability and unmanageable household debt levels.
But compared with many large cities around the world, Vancouver and Toronto real estate may see (almost) reasonable.
READ MORE: Here’s what $1-million homes look like in 16 Canadian cities
Here’s a look at what $1 million will buy you in housing markets around the globe.
New York City
Living in the most sought-after New York borough doesn’t come cheap: prices in Manhattan have soared by 91 per cent in the last decade. In 2016, the average price for a property was US$2.2 million which is just shy of C$3 million.
According to the City of New York, for the first time in decades, more people are moving to or staying in the city than are leaving. Affordable housing in the city has “reached a crisis point” as high-end properties continue to swallow up affordable units.
This New York City apartment has one bedroom, one bathroom, exposed brick in the living room and an odd column in the kitchen. It’s listed for US$750,000, which works out to C$1 million.
Sydney
House prices in Sydney are up 18.4 per cent year-over-year; in the past five years prices have increased by 75 per cent. Investors are being blamed for the steep increase, and regulatory authorities have placed a cap on the number of loans banks can give investors in an attempt to cool the market.
Sydney’s average house price to household income ratio is 12.2, according to Demographia’s 13th annual International Housing Affordability Survey. An Organization of Economic Co-operation and Development (OECD) report released Thursday warns of “continued vulnerability” to a major correction in the housing market.
In Sydney, C$1 million nabs you a one-bedroom, one-bathroom condo. The building’s amenities include a pool, gym and sky lounge. It’s within walking distance of Hyde Park and has views of Darling Harbour and the Blue Mountains.
Hong Kong
Hong Kong is the world’s priciest real estate market. Its average house price to household income ratio is 18.1, according to Demographia’s affordability survey.
There have been efforts to rein in the market, including upping the stamp duty (akin to a land transfer tax) buyers pay when purchasing a property to 15 per cent.
For C$1 million this Hong Kong property is big on views but short on walls — it’s a studio.
Berlin
Berlin’s housing market has seen healthy growth in recent years, and home values are up 49 per cent over the last five years, Forbes reports. Foreign investment is booming, accounting for 76 per cent of 2016 sales.
For about €700,000, or C$1 million, you can buy this three-bedroom, two-bathroom townhouse. It offers a fireplace, sunny terrace, and in-floor heating on the ground floor.
Buenos Aires
This Buenos Aires penthouse boasts a sunny terrace and three bedrooms. The 3,100 square foot unit comes in under budget — just over C$850,000.
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