Suzieq;
I think that putting Toronto in with cosmopolitan cities like New York, London, Hong Kong, Paris and Tokyo may be a bit of a stretch.
These other cities, at least the first 3; are major financial centers. Yes, Canada has fared quite well so far but now there is news of a possible China slowdown. You saw the C$ drop precipitously as suddenly the question became whether or not China will need as much raw resources; the main reason that the C$ stood up so well. If the C$ starts to drop; then foreigner's buying our real estate will be looking at a depreciating currency. This is simply more escalation in price they have to get to maintain the value of their investment.
My point is that Canada has done very well for a cosmopolitan city of late; prices have grown to reflect that. Continued price increases in a bad economy, World wide problems will require the Canadian economy to continue to perform at outstanding levels which in my view is a big risk. I fully expect prices to level off and even possibly drop. I stick to my prediction that 10-15% price depreciation over the next 3-5 years is certainly not to be unexpected. Of course, my crystal ball will have to be altered to reflect world events as they change.
