Condos are emerging as the residential asset of choice in Victoria, which helped push the market’s average housing price down during the third quarter, according to Royal LePage.
“Newly constructed developments are driving strength in Victoria's condo sector. Units in these new builds are being sold quickly,” Royal LePage Coast Capital Realty sales representative Neil Bosdet said.
“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.”
The Royal LePage House Price Survey released least week showed that Victoria’s average home sales price moderated by 0.4% year-over-year, ending up at $760,475 as of Q3 2019.
By asset class, the median price of condo units grew by 6% annually during the quarter, to an aggregate average of $493,448.
Meanwhile, two-storey dwellings saw their average price fall by 1.5% to $858,658. Bungalows suffered a 0.8% year-over-year decline to $765,091.
To compare, the national aggregate housing price increased by 1.4% annually to $630,335 during the third quarter.
Royal LePage predicted that for the final quarter of the year, this aggregate price will go up by 1.5% year-over-year to $632,226. This will also be 0.3% higher compared to the third quarter of 2019.