2016 Richmond Townhouse Market Overview

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What Exactly Happened In The Real Estate Market In 2016?

Metro Vancouver definitely went through a roller-coaster year. Just when residential sales volume and pricing hit an all-time high across the board, a little thing called “foreign-buyer-property-transfer-tax” was introduced by the provincial government in August.

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Metro Vancouver then became a city of two markets, with Richmond included.

While the single-detached-house market dropped faster than Donald Trump’s Approval Rating in 2017 (I’m kidding, it wasn’t that bad), the townhouse segment seemed entirely unfazed by the Premier’s policy.

From August to December 2016, the Home Price Index (HPI) for townhouses in Richmond went down by 1.5%, a stark contrast to the single-house department of 8.1%. (Figure 1 and 2)

But How Many People Actually Stopped Buying?

With a long history of non-stop appreciation and short-term uncertainty, single-detached housing finally stopped being everyone’s favourite child. Homebuyers and investors alike started turning their attention to apartments and townhouses.

This made 2016 a year of rare accomplishments for townhouse properties: over 1,000 Richmond townhouses changed ownership, and an average townhouse increased 22% in value! For those in the market to buy a home in Richmond, their money lost one-fifth of its value over the span of a year.

Depending on the neighbourhood, some homes even appreciated as high as 30%. To see how much your home appreciated, take a look at Figure 3.

Figure 3 – Sales Volume and HPI Growth  

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High-end complexes, such as Kingsley Estate in Woodwards or Springbrook Estate in McLennan North, have long broken the $1 million mark. (Figure 4 and Figure 5)

Figure 4 – A Home In The 12 Y/O Springbrook Estate Sold For Over $1.2 Million

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Figure 5 – The Brand New Kingsley Estates Sells Close To $1.5 Million

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Am I Stuck With Buying Apartments Now?

Don’t worry, you’re not too late to the concert.

In fact, the mainstream products in the townhouse segment still range between $600k to $800k (Figure 6). If this is within your budget, there are many good housing choices:

If you want to be close to schools, groceries stores, and want to be part of a close-knit community, McLennan North should be your number one choice.

If you want to buy the lifestyle and privacy of a single detached house with a townhouse budget, take a serious look in West Cambie.

If public transportation is your thing, and you’re big on the convenience and liveliness of the city centre, there are many good homes to choose from in Brighouse.

Figure 6 – 2016 Richmond Townhouse Sale Volume

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Is This A Good Time To Exit The Market?

If you’re considering relocating or disposing your investment property, take some notes.

As the weather is slowly warming up, so is the townhouse market. In the traditionally popular neighbourhoods, namely Terra Nova, Broadmoor, and Riverdale, inventory is at an all-time low.

With effective marketing and proper preparation of their properties, homeowners will be able to attract a huge audience of buyers. Just understand how to handle a multiple-offer situation with finesse, and they’ll often be very satisfied with final sale price.

Figure 7 – Richmond Neighbourhood Map

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In Metro Vancouver, purchasing a single house for under a million seems like a distant memory by now.

For many homeowners-to-be, townhouses are becoming another great choice for ground-oriented homes. They offer the privacy of a single-detached home and the convenience of an apartment unit. With many cities opting to densify their neighbourhoods and Richmond following suit, townhouse is fast becoming the future of home living for many Vancouverites.

 

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