Issue 21 – January 2014

GREATER (METRO) VANCOUVER

JAN 2014 QTLY UPPER-TIER REAL ESTATE UPDATE #21

A MOMENTOUS YEAR IN THIS LUXURY MARKET

Despite a less than stellar period in both International and North American economies, our city’s luxury sector has, in a significant way, “come of age” [“When History is made – PT 1 and 2]. See ISSUES 19 and 20 on the HOP website. International buyers from various locations have been more than evident and active investors.

Upper Tier activity continues without pause and, based on the past quarter’s results and current inventory levels, we at Homes of Provenance believe that 2014 will show increased activity in all categories of luxury residence in Vancouver. An item worthy of note is the upcoming Chinese New Year, being celebrated on January 31st this year. There has been a marked rise in properties purchased on and around this event in past years. Our discussion with various Real Estate practitioners involved with the representation of clients in the West Side of Vancouver, West Vancouver, Richmond and North Vancouver reveals that this year will likely be no exception. There are many who talk of plans for the arrival of flights from mainland China bringing numerous folk intent on the acquisition of residential property. A perceived shortage of inventory of suitable homes is felt, by some, to likely spark “bidding wars” for the more desirable offerings. The past year has given us some evidence of the ‘desirable’ targets as including larger detached residences (specifically those with views), older homes on both larger and view lots suitable for rebuild.

Based too on the experience over 2013, other practitioners believe that we will see elevated demand for the more desirable strata offerings. This demand, while including a significant Asian group, also comprises buyers from the Middle East and parts of Europe. Some presenters at the Leaders In Luxury, Institute for Luxury Home Marketing Conference held in November in Seattle, spoke at length of the increasing demand from off -shore buyers focusing on the West Coast of North America (California northward to coastal British Columbia). A good number of Institute members across Canada with a preponderance of Vancouver area attendees. Yes, a serious level of demand for our city’s real estate and an active market in its upper tier. There is significant belief that this demand is growing.

Now the 4th and final quarter 2013 figures from the R/ E Board’s database.

Detached homes sold [$2MM and above] 2013 – 387 listings sold vs. 2012 – 182 sold (an increase of 112%). Highest sale $8.5 MM (’13) vs. $8.388 MM (’12). This property – at 1589 Matthews Ave, Shaughnessy sold in Dec’13 after 265 days on the market, originally listed at $9.988 MM, 5 bed/8 bth, it is a 5,260 sq. ft. rebuilt 1937 First Shaughnessy character home on over 20,000 sq. ft. secure property. Tax assessed at $9.729MM. A unique property and a distinctive home of provenance.

Attached homes, those best described as townhomes and duplexes, [$1MM and above] 2013 – 51 units sold vs. 2012 – 48 sold (an increase of 6 %). Highest sale $2.1MM (’13) vs. $5.388 MM (’12). This property on West Vista Court (Edenshaw development) in West Van’s Upper Caulfield sold in Dec’13 after 43 days on the market. One of the most stunning view properties on the bluff at Edenshaw. 3bd/3bth and 2,940 sq. ft. of living space. A luxurious offering in a refined community of exceptional homes.

Apartments [$1MM and above] 2013 – 80 units vs. 2012 – 70 sold (up 14%). Highest sale $4.7MM (’13) vs. $5.3MM (’12). This is the entire16th Floor 3 bed/3 bth apartment – 3,358 sq. ft. in the sought after Tudor Manor Heritage rebuild at 1311 Beach Avenue. Magnificently renovated with marble, high end hardwood and an impressive chef’s kitchen. Panoramic, unobstructed 360 deg view. Listed originally at $5.1MM, it sold in Dec’13 after 209 days on the market. Tax assessed at $3.683MM. Another home marketed by RE/MAX Metro Vancouver Properties.

Here are the current inventory (listings) figures:

Detached ($2MM and up) 981 – Highest $22.8MM * – 37 at $10MM plus
Attached ($1MM and up) 111 – Highest $35MM** – 8 at $3MM plus
Apts ($1MM and up) 301 – Highest $22.3 MM*** – 16 at $5MM plus

* 5050 Happy Valley Lane. 2yr, 7bd, 8bth- 12,988 sq ft. custom blt estate
(2.3 acre lot), Caulfield W/Van. European style mansion, Lighthouse Park.
** 3838 Cypress St. 5bd/7bth, 3 lvl, 12,216 s/f SL1 &2 combined, early
1900’s Heritage ‘A’ gem, Lt. Gov. Hamber’s Res “Greencroft Estate”
*** 3 Harbour Green 8,008sf P/H – 4bd/6bth, approx 3000sf patio/dk/rftop

Call 604-626-2526/e-mail HOP for info or to view any of these.

Note: We place little store on “asking” prices, as the true measure of a market is “sale” price. We include these as they are clearly of interest. It underlines the fact that unique properties are challenging to price and, in certain markets, very few may sell.

Please visit our website for new developments. We continue our promise to keep you up to date on Vancouver’s HomesOfProvenance.com – the “go to” site for Upper Tier Real Estate analysis and jumping off point for market offering information.

To join the group getting the e-mail version of this “update” – send a request now to info@HomesOfProvenance.com and you’ll be assured receipt; phone us at (604) 626-2526 or visit www.HomesOfProvenance.com

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