The City of Vancouver’s luxury housing market has taken a hit amid economic and geopolitical uncertainty, according to a new report.
Sales of residential properties priced at $4 million and above in the first half of 2025 fell by 51 per cent compared with the same period last year—the steepest decline among Canada’s major cities, according to a Wednesday report from Sotheby’s International Realty Canada.
The luxury real estate brokerage recorded only two transactions above $10 million, down from seven during the first half of 2024. Sales of properties priced over $1 million also declined, dropping 26 per cent during this time.
“Consumer sentiment and sales activity remained largely restrained, as buyers paused and awaited greater economic clarity—conditions that did not meaningfully improve in light of heightening global volatility,” the report stated.
A total of 85 properties over $4 million were sold in Vancouver in the first half of this year, while 1,760 properties priced over $1 million changed hands.
Sales of homes in the $1 million to $2 million range declined 19 per cent year over year to 1,194 transactions, while sales in the $2 million to $4 million range dropped 35 per cent to 481 properties.
Declines were recorded across all luxury property types, including detached houses, townhouses and condominiums.
“The city’s elevated housing prices eroded some of the potential traction gained from stabilizing interest rates, as the central bank held rates at 2.75 per cent through the first half of the year,” the report noted.
“Although the luxury market is less sensitive to interest rate changes due to the greater financial resilience of prospective buyers, any potential momentum from conventional buyers moving up into the entry-level top-tier or luxury market stalled.”
Toronto’s luxury market also contracted sharply, with a 23 per cent year-over-year drop in sales of homes over $4 million and a 13 per cent decline in sales of homes over $1 million.
Meanwhile, Montreal and Calgary saw gains in these segments, with sales of homes over $4 million rising by 22 per cent and 43 per cent, respectively, and sales over $1 million up by 26 per cent and three per cent.
“Vancouver’s luxury housing market is poised for a cautious summer, as the hesitant ‘wait and see’ sentiment that defined the first half of 2025 lingers,” the report reads.
Sotheby’s said it remains "cautiously optimistic" that activity will renew in the months ahead, although "a dramatic rebound is unlikely this summer."
