Condo sales and prices have been on the rise in one of Canada’s most expensive and popular markets.

In its 2021 Condominium Report for Greater Vancouver, RE/MAX attributed strong market demand as the source of the “significant uptick” in unit sales across the region.

Between January 1st and August 31 this year, more than 15,000 condominium apartments were bought and sold in Greater Vancouver, an increase of 87.2% from the 8,047 units sold during the same eight-month period last year.

Of the five key Canadian housing markets and 100 sub-markets that RE/MAX analysed, the West experienced the greatest gains in sales. This includes Calgary, where sales have grown 83% between January and August compared to the same period in 2020. The greatest concentration of condo sales came from Greater Vancouver, where condos represented 48.2% of the total residential sales in 2021. This is up from 46 % last year.

The soaring quantity of sales can be traced back to markets such as the Sunshine Coast and Whistler, where RE/MAX says condo transactions saw the greatest upswing in annual sales, with percentage increases as high as 140%. Communities such as Burnaby, Delta-South and West Vancouver-Howe Sound also recorded sales increases over 100%.

Price gains for Greater Vancouver condos were much more moderate compared to the growth in sales. According to insights from Real Estate Board of Greater Vancouver (REBGV), the average price of a condo apartment was approximately $740,221 as of August, a minor 6.7% increase from the same month in 2020 when the average price was $693,691.

This is a contrast from the detached segment, which reported a 21% price increase in August, sending the average price close to $2 million.

Condo inventory levels have trended downwards in recent months, with Greater Vancouver listings down 27% year-over-year as of August. As supply dwindles, prices are facing upward pressure in the months ahead.

In light of affordability difficulties, condos offer the entryway to home ownership, RE/MAX explained in its report. So far this year, 48% of home sales across REBGV districts involved a condo. Many purchasers are first-time buyers looking to break into the market, a demographic that gravitates towards resale units that offer proximity to the SkyTrain and has at least one bedroom and a den. False Creek, Yaletown and Coal Harbour have been attracting the younger segment of buyers for their offerings of trendy retailers, restaurants and biking paths, RE/MAX said.

Domestic buyers have been the main driving force behind Vancouver real estate as of late, but this could change in the near future.

“However, with immigration expected to ramp up with the relaxation of Canada’s borders, there could be further pressure on housing sales and values in Greater Vancouver down the road,” said the report.

Greater Vancouver Condo Sales Have Climbed 87% This Year by Michelle McNally | Livabl