Richmond Condo News

Housing Marlet Update From England

"The fall in house prices has accelerated in England and Wales, according to the Land Registry".

Its latest report shows that prices fell by 1.9% in August, taking the annual rate of price deflation to 4.6%.

The figures mean that the average property now costs £174,493; £8,320 less than a year ago, with £3,871 of that drop occurring last month.

Prices in London fell by 3.2%, the first monthly fall since the Registry started publishing its figures in 2000.

Read the full report here ...

Asset Price Deflation?

Canada had been experiencing a low down in residential real estate sales for the past 5 months, with many provinces registering price declines year-over-year. This trend on real estate price decline that started in the USA, has spread over to Australia, New Zealand, UK, Spain, Turkey and other countries.

Over Supply Of Condos in BC?

Canada may be able to withstand the price decline better than the US and UK. The extend of the price correction eventually is determined by the supply-demand by home buyers. With the large supply of homes currently available for sale, coupled with huge price gains over the past 6 years, double digit price correction may be expected.

In BC, the biggest build-up in inventory is multi-family condos and townhomes developments. The slowing down in sales for resale new condos in Downtown Vancouver is now showing up in price weaknesses. One bedrom new and near new resale condos at Spectrum Towers that sold for $350,000 to $360,000 last year can now be bought at $290,000 to $320,000 range.

Good Time To Buy Now?

If you are planning to buy a condo, this can be the best time to start looking at the deals available around you. You may be lucky to buy a Downtown Vancouver resale new or almost new condo at $500 per sq ft or less. There are many condos that are priced significantly less than their selling prices a few months ago.

Please contact me at 604-721-4817 for more information on finding a great deal in downtown Vancouver. Or send me an email me on available condos for sale in Downtown Vancouver.

The following table summarized the August sales of condos in Richmond:

At the beginning of 2008, Richmond's housing market was strong, registering list/sale ratios at around 4 months. Since April, the collapse in the real estate market in B.C. had resulted in Richmond's list/sale ratio increasing to 12.8 months in August.

The housing market is now a Buyer's market. There were many media articles in the past few months that could have contributed to many home buyers staying on the sideline.

The above analysis showed that the fastest selling condos in Richmond were those priced under $300,000.

Affordability could be the main reason for these lower priced condos accounting for more than 50% of the total condo sales. Condos priced in the $400,001 to $500,000 registered the higherst list/sale ratio. These condo sellers will have to price their condos accordingly to attract buyers.

Sales By Age Group

When the age group was analyzed, the following interesting data emerged:

The data showed that there was a large supply of new condos under 2 years old - around 33% of the total condo listings.

The sales for condos under 3, 5 and 10 years old all were exceeding 16 months. For a condo seller, this is as good as facing a 6% chance of selling his or her condo! The alternative for condo owners who are not prepared to reduce their prices to sell, is to rent out their condos until sales pick up.

Will condos in Richmond return to a balance market?

A balanced market is when the list/sale ratio is around 6 months. This will only happen when sales pick up and double the present sales from 77 to 164 units a month. This may only happen when more buyers are getting back into the market. This may not happen unless condo prices declined significantly.

during the height of the housing boom in Richmond, the average sales for condos in 2006 and 2007 were 167 and 171 units per month.  Not only prices have to be more affordable, the minimum 5% down payment requirement for CMHC hig-ratio financing effectively eliminated many first time home buyers from getting into the market.

Over Supply Of New Condos

Based on the current new developments coming on stream, and the large over-hang of condos for sale, the market is flooded with too many condos and not enough buyers. It is inevitable that condo prices will be under a lot of pressure to come down.

How far prices will decline is anybody's guess. 

The collapse in condo prices has not happened yet in Richmond in spite of the past 4 months huge drop in unit sales. The prospect is not looking good as financial problems in the US and elsewhere will likely spill over, dampening consumer confidence in Canada.

Multi-family high-rise and low rise projects in Richmond

Click here to view the various new condo projects under construction in Richmond. Currently Prado is reported to be offering 5% discount to limited number of buyers. The offer is for 10 condos on first come first serve basis, and buyers can select their own condos at the published selling prices for the units.

The Flo by Onni are entertaining buyers' making their offers on the selling prices for the remaining units. The MLS sales over the past few weeks showed that some of the remaining condos at Garden City Residences On a Park that were "competitively priced" were selling well.

What to expect when developers are clearing their condos?

The time will come when developers are forced to sell off the remaining condos they own. There will be incentives, discounts or the GST being absorbed in the selling prices for new condos as happened in the last housing downturn in 1995.

This will obviously pose a problem for buyers who bought at the developer's prices. Effectively, some of them are already losing 5% of their condo values while these condos are still under construction.

We will continue to monitor and post our findings on Richmond's housing sales and pricing trends in the coming months.

NOTE: This representation is based in whole or in part on data generated by the Real Estate Boards of Greater Vancouver

The following table summarized Richmond's August sales:

Detached Home Sold In Richmond - August 2008

An analysis on the types of detached homes sold in Richmond revealed some very interesting data.

It can be seen from the sales summary here that detached homes under $650,000 formed 45% of the detached homes sold for the month.

About one-quarter of the homes sold were mid-level homes between $650,000 to $800,000 price range.

The higher priced excutive homes over $800,000 accounted for about one-fifth of the single family homes sold. Those between $800,000 and $999,999 made up just under 10% of the homes sold. The million dollar homes accounted for 11% of the total detached home sold for the month.

Typical detached home $500,000 to $650,000

Better value detached home $650,000 to $800,000

Executive detached home $800,000 to $950,000

Million dollar new detached luxurious home

Trading-up Market Opportunities

The slower sales for detached homes and high number of homes listed for sale in Richmond is showing around 18 months of supply. This will put pressure on selling prices, a drop in the median price for detached homes.

For home owners who are trading up, this is a good time to seriously consider a move. More homes were sold under $650,000 as the demand for homes in this price range is the highest. A home owner whose price is in this range will find it easier to sell his or her home.

In a soft market, higher priced properties takes longer to sell as can be seen from the data below. The probability of a move-up home buyer negotiating and buying a home at a good price is high. In a seller's market, sellers will be reluctant to make the price concession to sell their homes.

Solving The Dilemma - Sell Or Buy First

The advice any experienced Realtors give to their clients is to act decisively on preparing the home for sale, and at the same time looking out for the right home within the price range.

The basic requirements to sell a home fast have to be followed... price right, prep the home in tip top selling condition and have full market exposure to sell the home.

The Reasons For Trading Up In A Buyer's Market

A buyer's market present an excellent opportunity for a trade-up home owner to buy a better home in a more desirable neighborhood.

If the market price has dropped 10%, a home that previously can be sold at $650,000 will now sell for $585,000. The a list/sale ratio around 8.4 months, makes selling at this price range easier. For homes over $800,000, the supply demand ratio at around 22 months is much higher, and takes much longer to sell. Home sellers are more inclined to drop their prices more than 10% to find buyers.

Should You Make The Move?

You should discuss your options with your local Realtor whether trading up make sense to you. If moving to a better home in a more desirable location is feasible to you, your have better opportunities to do so in a buyer's market. For details on how you can make this possible, you can contact James Wong 604-721-4817 at Sutton Realty West Coast or email me.

NOTE: This representation is based in whole or in part on data generated by the Real Estate Boards of Greater Vancouver

Richmond welcomes Microsoft Canada Development Centre

Microsoft's software development centre is located at Crestwood Corporate Centre in Richmond BC. The Microsoft Canada Development Centre will focus on software development and will eventually employ 700 highly-skilled and well-paid workers from around the world. The centre consisting of two buildings totalling 80,000 square feet in the Crestwood Corporate Centre.

Crestwood Business Park

The Crestwood Business Park is acknowledged as one of the leading business parks in the Greater Vancouver area. Richmond is already home to some of Canada's leading international technology firms including MDA, Sierra Wireless, Sage Software, Ventyx and McKeeson Medical Imaging. The addition of Microsoft will ensure Richmond continues to develop as a nexus for technology industries in Western Canada and the Pacific Northwest.

Why Richmond?

The main reason for Microsoft establishing its Software Development Centre in Richmond is as a result of a cap on working visas for the skilled workers required by Microsoft. The Microsoft jobs are in computer software development, requiring the specialized skills of designers and programmers that are in high demand around the globe. Read here for a write up on why Microsoft chosed to locate its Canada Research Centre in Richmond B.C.

In addition to location and access to global markets, Microsoft cited quality of life for its employees as an important consideration in its selection of Richmond. A modern city with a full array of recreational, cultural and commercial amenities, Richmond was recently named as "Canada's Healthiest City" by Canadian Living magazine and is one of Canada's most culturally diverse cities.

Real Estate Values and Microsoft

The presence of Microsoft's employees in Richmond has a direct effect on the real estate values in Richmond. The additional demand from Microsoft's employees and their families for housing will boost rental rates. For those who want to own instead of rent, they will add to the pool of home buyers for Richmond.

Some Microsoft employees may apply to become permanent residents in Canada. These skilled workers will add to the skilled immigrants Canada is trying to attract under it's present immigration policy guidelines.

Rental Rates Heading Higher

The rental rates for new condos in Richmond jumped substantially by 30% to 50% from 2 years ago. It was reported that relocation companies involved with finding accommodations for Microsoft's employees were reported to be offering up to $1,500 a month for a 1 bedroom new condo. The higher rental rates are partly the result of the doubling in real estate prices over the past 6 years.

The planned developments and densification of Richmond City Centre in conjunction with the Canada Line Skytrain system connecting Richmond to Vancouver City is an important factor contributing to the strong new Condos market in Richmond.

New Condo Prices Are Holding

In spite of the slower real estate market in Richmond over the past 4 months, higher rental rates are helping to support new condo prices at the $450 to $550 per sq ft level. Currently, investors are able to rent out their new 1 bedroom condos at $1,300 to $1,500 and $1,600 to $1,800 for their 2 bedroom condos. These rental rates are sufficient in helping new condos holding to their prices.

The effect of the financial market meltdown in the US in recent weeks will definitely dampen the real estate market in British Columbia. The extend of the US down turn and stock market decline may only be known on a much later date.

If you like to have more information on buying a home in Richmond, you can contact James Wong 604-721-4817 or email me.

The Skytrain Effect & Richmond Real Estates

The Canada Line - the Skytrain under construction now connecting downtown Vancouver to Vancouver International Airport and Richmond, not only changed Richmond's skyline, it also spur the demand for new condos. This $1 billion plus Skytrain rapid transit line is scheduled to become operational towards the end of next year.

Will property values near key Canada Line stations spike up in values as experienced by home owners along the Expo and Millennium Lines?

According to a report by Landcor Data, from 1986 to 2007 the value of land within 500 meters of Skytrain stations increased 628% compared to 352% for other land in host municipalities. If the Canada Line is having the same effect on real estate values, Richmond home owners will benefit from the appreciation in their home values.

Key Canada Line Skytrain Stations

Broadway-Vancouver City Hall Station: Several new multi-family residential developments are now taking sharp around the station. Transformation of the area is spilling over to the north and south side of Braodway to Cambie Village at West 16th.

Richmond Stations: The Canada Line stations in Richmond are at Bridgeport, Aberdeen, Lansdowne and Richmond-Brighouse. Many concrete high-rise multi-family developments in Richmond are planned along this skytrain corridor. Some of these developments like Acqua, Paloma, Ocean Walk, Versante', Lotus Living, Garden City Residences On A Park, The Flo were completed or completing the next month or two, while others like Prado, Comino, Centro and Paloma2 are in various stages of construction. Click here to view condos for sale in Richmond City Center.

How the recent down turn in real estate affect home prices in Richmond?

The residential real estate sales activities for Richmond over the past 4 months were significantly affected by the Canada-wide slow down in sales. There are now close to 14 months supply of homes. Home prices for resale homes under the flight path and older homes sought after by new home builders were in decline.

New condo prices around Richmond City Center are holding for now!

The selling prices for new and resale condos are holding at the $450 to $500 per sq ft level. Many of the 57 new condos at Garden City Residences On A Park released for resale by the Receiver Manager were reported to be sold. Investors who listed their Richmond new condos for resale are keeping their prices.

For now these investors are hoping to sell at their prices, and some are renting out their condos. There are no significant price reductions on these resale new condos in spite of the present sluggish market.

How significant is the Skytrain effect on Richmond new condo prices?

The Richmond real estate market is still adjusting to the sudden collapse in sales and the financial turmoils in the US. Home buyers are cautious and most are holding off making any purchase for now. The higher market rental rates for new 1 bedroom condo at $1,300 to $1,500 and $1,600 to $1,800 for 2 bedroom condos may have contributed to the new condos holding to their prices.

With more new condos completing this year and the next 2 years, the Skytrain effect may have successfully propped up the new condos market in Richmond.

We will continue to monitor the supply and demand for new condos in Richmond City Center and track their selling prices over the next few years.

If you are looking for information on the latest resale new condos in and around Richmond City Centre, you are welcomed to contact James Wong 604-721-4817 or email me.

Why you should make moving to Richmond BC your top choice?

Richmond has all the attributes of a great, safe and vibrant community for any new comers to reside in and build a future for their families. The schools, amenities, ease of transportation, employment opportunities, etc all contribute to making Richmond a great place to live.

Richmond's ability to attract Microsoft to open a 700-employee software development center goes to prove that the city has the world-class commercial resources and infra structures to attract high-tech multi-national corporations.

Richmond BC Relocation

Richmond BC is a favourite city for individuals and families who are relocating from another Canadian province, USA or from other parts of the world. Richmond is well known for its quality parks, leisure facilities, and recreation services. It is a place to live, work, play and raise a family. For a family, Richmond has all the educational facilities for elementary, secondary, college an university education.

Click here to learn more about Richmond's neighborhoods and Real Estates.

Richmond is a garden city

Richmond has over 1200 acres of park land and a variety of recreational amenities, including pools, arenas, community centers, tennis courts, playgrounds, picnic areas, golf courses, lacrosse boxes, running tracks and playing fields.

Richmond Outdoor Activities

A favourite pass-time for residents of Richmond is to explore the parks and heritage village of Steveston, Gary Point Park and the system of dykes/wetland habitats along the West Richmond Trail.

Richmond City offers diverted shopping, restaurants and specialty stores catering to the needs of Richmond's multi-ethnic residents. The Richmond library, Aquatic Center, Ice Arena and Minoru Track/Park are located off Minoru Blvd... to the west of Richmond Shopping Centre.

Real Estate Services

I understand relocating and moving to another new community is seldom easy. When you are ready to make a move to buy your own home, I can help to facilitate your move by providing you the help and guidance you needed. Let me be your new host and help you with your real estate needs.

You can click on this link to view my profile. Call me at 604-721-4817 to discuss your real estate needs or email me.

Are you looking for an acreage home close to Vancouver?

I may have the property just right for you. The property is currently zoned for agriculture use and there is an up-dated detached 3 bedroom 1,400 sq ft rancher on the property. The house is currently rented out at $2,500 a month.

Property Location.

The property is consisted of 5 acres (756' X 285' ) fronting Highway 10 and 112th Street, with easy access to Highway 99.

Centrally located, the property is within a short drive to shopping amenities on Scott Road, Surrey. Access to South Delta and Richmond is equally convenient.

The property is suitable for different types of agricultural related businesses. Build your mansion here or live in this renovated rancher and use the land for your own berry or vegetable farm.

Asking Price: $1,400,000 - Private Sale

This is a rarely available property so close to Richmond, Delta and Surrey. This is an excellent holding property with long term potential. The cost per acre is just $280,000 as compared to over $500,000 per acre in Richmond.

Click here to find out why acreage homes are attractive to some home buyers.

If you like to have more information on this property kindly contact James Wong 604-721-4817 .