As homes’ prices increase, the furniture’s quality and price in these homes are rising if interior experts are to be believed. While prices of homes have been steadily rising, Vancouver’s benchmark furniture prices have increased by 46 per cent over the past two years.
Suquet Interiors, a business popular in Vancouver design circles, has been revived this summer. The timing is perfect. As Vancouver’s housing market is getting more heated than it already is, furniture sales grow stronger than ever.
As homes’ prices increase, the furniture’s quality and price in these homes are rising if interior experts are to be believed. While prices of homes have been steadily rising, Vancouver’s benchmark furniture prices have increased by 46 per cent over the past two years.
“I guess when you suddenly find yourself living in a million-dollar home, that faded 10-year-old couch just seems out of place,” Guatieri wrote in BMO’s AM Charts June report.
The increase of higher-end furniture sales is something that interior experts have anticipated in the wake of higher prices for homes and more foreign investment.
The market is just right for Suquet to swoop away from the buyers as they are focused on the higher end market. It is the people who are buying new homes and renovating to upgrade who are looking for quality furniture for their upgraded home.
“A lot of bigger homes are being built. If you’re going to spend upwards of $6- to $16-million on a home, you want quality furniture.” A company representative recently said.
With much of retail turning online for profits, the furniture business is not one that can reap bounties online as customers would prefer to see their higher-end furniture pieces in person before making a decision. Also, inventory’s heavy nature makes delivery and returns much more difficult than an average retail order. The company said that competition in the furniture market is expected to increase over the next five years.
Suquet has some artisanal pieces that are very trendy now; however, they cater to various types of interior styles. “Anybody in furniture retail needs to be prepared for change,” a company representative said adding that diversification was essential.
As more foreign investments come into our real estate markets, other sectors like furniture and interiors businesses benefit from the influx of cash into the sectors. Bigger homes being sold are likely to need more furniture, which is usually not cheaper but the higher end brands available. So while housing prices skyrocket, we can probably appreciate this small silver lining.
