The selling price of condominiums in Greater Victoria has started to take off as thousands of new units hit the market, according to a new house price survey released by Royal LePage.
The median price of a condominium increased six per cent to $493,448 in the third quarter of this year, compared to the same time in 2018 the survey found.
At the same time, prices of single-family homes were heading in the other direction, with the median price of a bungalow dropping 0.8 per cent year-over-year to $765,091 and the median price of a standard two-storey home dropping 1.5 per cent to $858,658.
Overall, the price of a home in Greater Victoria softened modestly during the third quarter of 2019, decreasing 0.4 per cent year-over-year to $760,475.
“Newly constructed developments are driving strength in Victoria’s condo sector. Units in these new builds are being sold quickly,” said Neil Bosdet of Royal LePage Coast Capital Realty.
“We are seeing millennial and first-time home buyers attracted to condos for their relative affordability. Younger generations are also willing to sacrifice space for a more desirable downtown location.”
However, Bosdet noted many first-time buyers are migrating outside the city centre to more affordable communities. The numbers explain the movement of construction cranes from one new condo tower to the next building site around Greater Victoria.
So far this year, out of 2,569 total housing starts, there have been 1,831 new apartments or condos started in the region. And as of this month there are 4,644 condos or apartments under construction.
According to Royal LePage’s survey, the price of a home in Canada has continued to post steady, year-over-year gains during the third quarter of 2019 as the real estate market sustained its recovery from the significant downturn of 2018 and early 2019.