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.
