While fluctuating economic conditions have slowed housing sales in recent months, most consumers of luxury real estate still consider it a sound investment, according to a study recently conducted by Architectural Digest with Sotheby's International Realty Affiliates LLC

More than 85 percent agreed with the survey's statement that real estate continues to be one of the better investments a person can make in their lifetime, with 72 percent accepting that their primary residences have either remained constant or increased in value over the last 12 months.

More than half of those polled also said that they plan to buy, sell, build or invest in a new home over the next year, with 69 percent of homeowners with properties priced at a million dollars or more believing that now is the time to increase their real estate holdings. Market investment The results were published in July from a mail survey of 3,500 Architectural Digest readers with annual household incomes of $100,000, or more. "The conclusion is that high-end real estate is, for the most part, recession proof," says Mark McLean, managing partner and Broker of Record of Sotheby's International Realty Canada. "The reason is mathematical: If the market is down 10 percent across the board then a $1million home is worth $100,000 less while a $2 million home is worth $200,000 less.

You can reap huge rewards moving up in a slower, or down, market." Headquartered in Toronto, McLean and his team of brokers specialise in high end properties, with a focus on the multi-million dollar condo market in Toronto's exclusive Yorkville neighbourhood. "Yorkville is at the centre of Toronto's booming condo market," McLean says. "It's where the best real estate development in Toronto has happened or is now happening, and it's not likely to experience a significant pull-back because of its location. It is close to parks, restaurants and some of the world's best shopping."

At present, McLean and his associates Andy Taylor and Jim Burtnick have about a dozen deluxe Yorkville listings, among them a 4,000sq ft three bedroom sub-penthouse at 10 Bellair, listed at $6 million, and a 3,600sq ft two bedroom apartment at One, St.Thomas, listed at $5.5 million. "They're all resale properties, and they have come to us largely though our web site where we track and post condo information," says Burtnick. The Internet, he adds, has been a useful tool in helping his office locate international buyers for their product. "For high-end real estate to withstand market fluctuations, buyers have to be canvassed not just from within our borders, but from around the world," Taylor adds.

To attract overseas buyers, the team relies on the Sotheby's brand, "which is internationally recognised for excellence in both product and customer service." That reputation stems largely from the international art market where for centuries Sotheby's has played an integral role as one of the world's most recognised art auction houses. Sotheby's International Realty has heightened its own profile by participating with Sotheby's in its sales events, the next being the art auctions in Hong Kong in October and Toronto in November.

There, Sotheby's International Realty will host an information desk for prospective buyers of Canadian properties in addition to those in the Caribbean, a growing market where Mr McLean is also making inroads with listings in Barbados, The Dominican Republic, Turks & Caicos, St.Lucia and the Grand Bahamas. "What the art market shows is that buyers are coming less from the U.S. and more from emerging markets like China, Hong Kong, India, Singapore, Russia and Dubai," says Mr McLean. "We have been watching this trend closely, because we feel that what happens in the art market is reflected in luxury real estate. Our focus is increasingly on buyers from different geographic locations who see Canada as a good investment with long-term results." Mark McLean is a Managing Partner and the Broker of Record at Sotherby's International Reality Canada in Toronto. He can be reached at mmclean@sotherbys.ca (416) 960-9995.

Useful information
Of the five most expensive listings on the MLS, three are listed by Sotheby's International Realty Canada, including the $12,000,000 penthouse at Museum House. This past May, Sotheby's International Realty Canada, in conjunction with Ritchie's Auction House, held their Important Canadian Art auction. The event was a huge success, with a total sales value of $10.8 Million. The highlight was the sale of a magnificent Tom Thomson, Pine Trees at Sunset, which sold for a record breaking $1.957 Million, greatly exceeding the presale estimate of $900,000. There were also twenty-three new price records for Canadian artists.