Condos continue to push up house values across Greater Vancouver, according to a report released Tuesday by Royal LePage, with the benchmark price shooting up 18.4 per cent to $692,452.
“Purchasers look to condominiums for relative affordability, yet with competition continuing to intensify, property values within the segment now outstrip most detached markets across the country,” said Adil Dinani, real estate advisor, Royal LePage West Real Estate Services.
“To put it into perspective, the budget now needed to purchase a condo could have netted someone a two-storey home here in Greater Vancouver four years ago.”
Within Greater Vancouver, Surrey saw the greatest condo price increase at 25.6 per cent, with Coquitlam, Richmond and North Vancouver not far behind.
In comparison, the benchmark price of a detached home rose by seven per cent to $1,269,816, thanks to relatively slow growth.
Although B.C.’s urban centres have seen skyrocketing house prices, the real estate agency thinks that’s set to slow down in the coming months.
By the end of the third quarter, the benchmark price of a home is expected to increase by 1.5 per cent to $1,289,120.
The real estate group attributes the ebb in growth to the new mortgage stress test, as well as the speculation and school taxes placed on more expensive real estate in the province.
However, while the new measures have cooled down the real estate market as a whole, they’ve spurred competition for starter-level condos.
“Buyers in this segment are having to take a very pragmatic approach to their home search,” said Dinani.