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Extremes

Canada is a country of extremes when it comes to the strength of its housing markets.

So much so that we rank near the top of a list of countries whose home price changes have the widest gaps among cities.

You’d expect at least some of that, given the breadth of the country, but the findings by Knight Frank illustrate just how extreme it is, underscoring concerns over prices in the Vancouver and Toronto areas.

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The first-quarter study by the real estate consulting group doesn’t take into account the latest hit to Vancouver, in June, but it still gets the idea across.

Canada ranked third for the strongest-weakest gap, at 15.8 percentage points, from Vancouver’s year-over year home price increase of 15.4 per cent to Quebec City’s decline of 0.4 per cent.

India ranked No. 1, and Australia No. 2.

The 10 countries with the largest gap between their strongest and weakest-performing cities

Weakest-performer

Strongest-performer

Difference in percentage points: 27.1 p.p.

India

Delhi

Surat

20.6

Australia

Darwin

Hobart

15.8

Canada

Quebec

Vancouver

14.1

Edinburgh

Britain

Aberdeen

12.7

Turkey

Istanbul

Izmir

11.6

Sevilla

Spain

Malaga

10.2

U.S.

Chicago

Seattle

10.0

Japan

Nagoya

Osaka

9.9

China

Shenzhen

Chongqing

9.6

Lille

Lyon

France

-10

-5

0

5

10

15

20

25%

12-MONTH PER CENT CHANGE (Q1 2017–Q1 2018)

THE GLOBE AND MAIL, SOURCE: KNIGHT FRANK

The 10 countries with the largest gap between their strongest and weakest-performing cities

Weakest-performer

Strongest-performer

Difference in percentage points: 27.1 p.p.

India

Delhi

Surat

20.6

Australia

Darwin

Hobart

15.8

Canada

Quebec

Vancouver

14.1

Edinburgh

Britain

Aberdeen

12.7

Turkey

Istanbul

Izmir

11.6

Sevilla

Spain

Malaga

10.2

U.S.

Chicago

Seattle

10.0

Japan

Nagoya

Osaka

9.9

China

Shenzhen

Chongqing

9.6

Lille

Lyon

France

-10

-5

0

5

10

15

20

25%

12-MONTH PER CENT CHANGE (Q1 2017–Q1 2018)

THE GLOBE AND MAIL, SOURCE: KNIGHT FRANK

The 10 countries with the largest gap between their strongest and weakest-performing cities

Weakest-performer

Strongest-performer

Difference in

percentage points:

27.1 p.p.

India

Delhi

Surat

20.6

Australia

Darwin

Hobart

15.8

Canada

Quebec

Vancouver

14.1

Edinburgh

Britain

Aberdeen

12.7

Turkey

Istanbul

Izmir

11.6

Sevilla

Spain

Malaga

10.2

U.S.

Chicago

Seattle

10.0

Japan

Nagoya

Osaka

9.9

China

Shenzhen

Chongqing

9.6

Lille

Lyon

France

-10

-5

0

5

10

15

20

25%

12-MONTH PER CENT CHANGE (Q1 2017–Q1 2018)

THE GLOBE AND MAIL, SOURCE: KNIGHT FRANK

Knight Frank’s overall index, which tracks prices in 150 centres, gained in the quarter by just 4 per cent from a year earlier, the slowest pace since 2015′s third quarter.

“The increased use of macroprudential measures to curb price inflation along with escalating affordability constraints account for the index’s weaker performance,” said Knight Frank partner Kate Everett-Allen.

Canada is a case in point on that front, with measures at the provincial government and federal regulatory levels aimed at easing frothy markets, largely Vancouver and Toronto.

Vancouver is extreme in its own right, by the way.

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“In Vancouver the mainstream and prime markets are diverging with prices registering 15.4 per cent and 0.2 per cent, respectively, on an annual basis,” Knight Frank said.

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