Vancouver residential sale prices reach mind-boggling heights

While home sales volume growth in Vancouver seems to have abated somewhat in recent months, demand for the city’s residential land does not appear to be petering out any time soon, with a single-family home near Cambie Street and 35th Avenue having just been listed for an eye-popping $11 million.

According to B.C. Assessment, the property’s listed value is now nearly twice the price it sold for only around 18 months ago.

The listing came in the wake of increased densification in Cambie Street recently. While many homes in the area have already been purchased for upcoming condo construction projects, 485 W 35TH Avenue remains one of the few properties to have not been slated for further development.

UBC Sauder School of Business professor Tsur Sommerville said that remarkable price surges such as this tend to arise from rapid development.

“As we’re getting rezoning and increasing densities, what that’s doing is basically providing a source of value,” Sommerville told CBC News, adding that similar increases can be observed in other transit corridors like Granville and Oak Streets.

“A piece of land when you can only build a single family house on it might be worth $2 million, but that same land, if you can build a six-storey condo building or a six-storey rental apartment building, might be worth $4 million.”

Former real estate agent John Lopes expressed bewilderment at the listing.

“I think this is totally ridiculous,” Lopes said. “At some point there's going to be a break. I don’t know when, but it will. It always has.”


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COMMENTS

  • by John Martin 2017-08-23 11:18:01 AM

    $11 million for that property... What a joke! The TRUE value of all real estate in this country is all way over valued, big time. Then you get these clowns.....unreal. Beyond ridiculous!

  • by M 2017-08-23 1:29:02 PM

    Part of the problem is new housing supply. Plain old boring supply-and-demand, which should not be ignored. Tackle housing supply issues, and the market will reflect a different supply and demand situation.
    But no, a combination of knee-jerk reactions works to make the situation worse: "It's all the fault of foreigners/foreign buyers" has the effect of supposedly dignifying restrictions on some of the very capital which contractors need to be able to fund their developments, since the banks' rates are so unattractive, compared with private investors'. "It's all the fault of the market" indulges fantasies - with, however, more fertile ground for flourishing in Canada than in the US - that the market can be bucked by excessive regulatory zeal. In the final analysis, if there are enough people with such knee-jerk prejudices, they will to some extent get the housing situation and policies that those prejudices merit.

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