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Greater Vancouver Condo Market Becomes Hot And Why

Greater Vancouver Condo Market Becomes Hot And Why

Condos are hot. The fact that buyers in the Greater Vancouver area are willing to pay big bucks for condos means a new build condo home now costs almost as much as a townhouse or three-bedroom detached property.

In 2015, the amount of condos sold in Greater Vancouver has soared by 20 per cent year on year. And sales are up by more than 66 per cent on the figure from 2013. Condos are in and everyone seems to want to one.

Looking further forward, it seems that almost 90 per cent of the 21,600 or more concrete condominiums scheduled to be completed by the end of the 2018 have already been signed off and sold.

In October 2015, sales of apartments topped 1,543, an increase of 21.7 per cent on October 2014. But if we look all the way back to sales in October 2013, we find there were just 1,098 sales, meaning 2015 has seen an increase of more than 40 per cent in just two year.

So what kind of increase are we looking at in terms of condo prices over the year? In October 2015, the mean price for a condo stood at $425,800, an increase of 11.4 per cent on the previous year.

Among the factors driving condo prices up are higher land costs and rising construction levies. Some area are seeing condo prices rising far quicker than in others. Buyers from overseas never really went away from the housing market, but they have not been this active in the condo market before; preferring to purchase and invest into single-family townhouses and million-plus homes in the Greater Vancouver district.

The Chinese currency is still looking good when matched to the Canadian dollar. In fact, it is worth 30 per cent more now than it was a few years back. And this has spurred investors from the Chinese mainland to buy into anything that might be called property in Greater Vancouver, be it a townhouse, a multi-bedroom mansion or even a condo.

Firms with offshore capital are buying up land to build huge developments where condo towers and blocks will be built to house families in their thousands. The same developers are willing to pay more than the asking price just to get a foothold on the land it wants to develop. And with patience, money and sophistication to hand, the developers will wait and eventually set up here.

Check condo homes for sale prices here (select “Apartment/condo” in the property type) or talk to Greater Vancouver real estate agent for more info.