The cost of two-storey homes and detached bungalows in Vancouver has risen considerably over the past year, but prices of standard condominiums remained flat, according to a RoyalLePage survey.
Standard two-storey homes rose in price 9.1% to $1,182,250 in the first quarter of 2012 compared with the same quarter a year ago. Detached bungalows posted a similar 9% jump to $1,068,500 during the same period.
Standard condominiums, however, rose a modest 0.5% year-over-year to $510,000 in the first quarter of 2012.
News of the sluggish price increases for condos come as insiders forecast that prices for pre-sale condominiums will fall 10% in 2012.
MPC Intelligence and Strategics recently produced a 416-page Condominium Market Opportunities Report on Metro Vancouver’s condo market that notes highrise, pre-sale condominium prices were close to $586,000 in late 2011. It projects that average prices in 2012 will be close to $530,000. (See this week’s Business in Vancouver “Condominium glut to drive prices lower in 2012” – issue 1172; April 10-16.)
If average prices in 2012 wind up being higher than $530,000, sales will likely be unexpectedly slow, the report said.
MPC’s senior manager Jeff Hancock told Business in Vancouver that the projected price dip is likely partly because of an “oversupply” of concrete units in 15 southeast False Creek developments – enough units for 23 months worth of sales.
© 2012 Real Estate Weekly