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 steady amid economic uncertainty.
Key findings from the Canadian Luxury Real Estate Market Report, by Engel & Völkers, also show that the ultra-luxury market is accelerating as wealthy boomers downsize.
In Toronto, condos priced over the $5 million mark are experiencing strong demand. 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 and favour 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.
Regional divergences are also emerging as market conditions are increasingly varied across provinces. Neighbourhood segmentation has become the new norm, with home prices varying dramatically— even from street to street — based on a complex mix of factors ranging from school zones to lifestyle amenities.
“One thing is clear — today’s Canadian market is hyper-local,” said Andrew Dinsmore, chief financial officer at Engel & Völkers Americas. “It’s no longer just about city averages — it’s about the block, the view and the school zone. From street to street, values can shift dramatically and buyers are more focused than ever on pinpointing the right fit.”
In the mid-luxury market, properties in Ottawa priced between $1 million and $1.99 million accounted for 10.8 per cent of all real estate transactions in the first half of 2025. This is up from 8.6 per cent in the second half of 2024. 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.
Immigration caps slow demand
Immigration caps are beginning to temper demand from new international buyers. Over the past decade, investors and wealthy newcomers have been a major driver of luxury sales. The latest population growth numbers (effectively flat for early 2025) reflect this policy shift.
Meanwhile, 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.
Regional overview
In Toronto, average prices for two-bedroom condos dipped slightly compared to the first half of 2024, to $1.25 million, while one-bedrooms showed a slight 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.
In Vancouver, two-bedroom condos also remained resilient, with average prices between $1.23 million and $1.27 million, highlighting their enduring appeal among entry-luxury buyers.
In Montreal, 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. 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.
Advisors in Ottawa 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. Across the broader market, the days-on-market lengthened, and negotiation margins widened.
Halifax’s premium housing market saw a delayed but determined spring surge, with buyer momentum expected to continue in the summer months. The $1 million to $2 million price band accounts for the highest volume of sales above $1 million. Well-maintained detached homes continue to drive the luxury market.
