Calgary’s Upscale Luxury Segment Attracts ‘Youth Money’ | Calgary Herald

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While the luxury market was once dominated by the 55+ age group, many buyers are now in their 30s and 40s.

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Significant price discounts and growing interest from a new generation of high net worth buyers are driving the most activity in Calgary and the surrounding area’s ultra-luxury market in several years, says agent real estate specializing in high-end properties.

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“We are seeing more and more buyers who have chosen to invest more in a home because they are not buying the recreational property … because they cannot travel and do not know when they will be able to travel,” explains real estate agent Rachelle Starnes. with the Starnes Group at Coldwell Banker Global Luxury in Calgary.

She notes that the luxury segment is off to a good start in 2021, building on increased activity towards the end of 2020.

In the first two months of this year, 198 single family homes worth over $ 1 million sold in Calgary, Rocky View and Foothills County. This is the highest sales figure over this period in the segment in five years – 128% more than the first two months of 2020 and 133% more than in 2019. Among the ultra-luxury segment – the homes priced at $ 1.8 million or more – demand was also strong with 37 sales from the start of the year to mid-March, Starnes notes.

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More than 50 percent of sales – 19 – were in Springbank, Bearspaw and other areas outside Calgary, she says. The others have performed in traditional upscale Calgary neighborhoods including Mount Royal, Elbow Park, Britannia and Bel-Aire. The focus for buyer activity marks a change from 2020, when more than half of the 20 sales over $ 1.8 million were in more established and centrally located communities rather than in areas outside of Calgary, Starnes says.

Current activity follows a global trend highlighted in the 2021 Coldwell Banker Global Luxury report, released this month.

The report notes a noticeable shift from the ‘less is more’ motive that has driven luxury shoppers around the world in recent years, seeking more urban lifestyles with high-end amenities, but footprints. a little smaller for houses. Now buyers are turning to “mega-mansions, resorts, private islands and large estates,” he says.

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Calgary is among the cities featured in the report, which notes that the market here offers luxury buyers good value for money. Following the downturn in the energy sector, she cites ultra-luxury housing prices which have fallen significantly below prices in the early 2010s. One prominent example is a French castle-style mansion in Springbank, listed for the first time at $ 20 million in 2015, which was auctioned for less than $ 6 million in December.

“The report was about the numbers for 2020… but these are really the first two months of 2021 where we’ve seen the big increase,” says Susanita de Diego, broker / owner of Coldwell Banker Complete Real Estate in the city. “We had the most sales we’ve seen since 2014, which was the last peak in the market. “

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As sharply discounted prices stimulate demand, so do a new demographic of buyers.

“Previously there were over 55 years in the super luxury market,” Starnes says. “But we have seen the age range drop dramatically.”

Today, many buyers are in their 30s and 40s – young people, so to speak – having made their fortunes in Calgary’s booming tech sector and burgeoning financial services industry, as well as in energy.

Starnes notes that strong activity is expected to continue into the spring as prices remain well below the previous boom.

“I think we’re going to see this increase over the next couple of months, but it should stabilize at some point as there are even fewer buyers than in the previous boom due to the ongoing economic downturn.”

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