Vancouver real estate: Teardown listed for $3.5 million on West Side
A teardown on Vancouver’s west side has been listed for just under $3.5 million, a year after it was bought by a number company for $2.5 million.
It’s unclear how the seller decided on the asking price, which is about 40% higher than the property’s last sale in February 2021. CTV News has reached out to the realtor for more information.
The listing raised a few eyebrows on social media, but Tom Davidoff, a housing researcher and professor at UBC’s Sauder School of Business, told CTV News the price doesn’t strike him as “totally crazy,” considering given the state of the market.
“Prices have definitely gone up over the past 12 months,” Davidoff said.
“Now that’s a totally crazy number because there aren’t many people in Vancouver who can pay $3.5 million just for land and then build a house on top of that. You’re probably looking at $5 million at this moment. “
The listing notes that the property, located in the expensive neighborhood of Arbutus Ridge, has already undergone “oil tank removal and asbestos analysis”, making the 94-year-old home ready for a possible demolition.
“Builder and investor alert!” the list reads. “Ready to build your dream home.”
The images show the windows and entrances of the house boarded up and the exterior marked with graffiti, including the words “Eat the rich”.
According to the Real Estate Board of Greater Vancouver, the benchmark price for a single-detached home in the area fell from $1.75 million in April 2021 to $2.13 million in April 2022.
But with the Bank of Canada expected to continue a series of interest rate hikes, some analysts believe Vancouver real estate is poised for a downturn that could last for years.
A Royal Bank of Canada outlook released last month predicted that B.C.’s global benchmark price would fall 3.8% in 2023, the biggest drop expected in the country.
“We expect downward price pressure to be most intense in Vancouver, Toronto and other expensive markets,” RBC deputy chief economist Robert Hogue wrote in the report.
Davidoff noted that so far the market has only started to show signs of slowing down.
He also pointed out that the Arbutus lot is 50 feet wide, making it larger than many Vancouver properties, which could allow for greater density than your standard single-family home with a basement or a house in a alley.
“I can say for comparison purposes, seeing essentially a dismantled property that’s very likely to be replaced at $2.5 million on the west side wouldn’t be uncommon, and it would usually be on a smaller lot,” said he added.
The property was last valued at $2.38 million, with the teardown of 1,195 square feet — a two-story home with three bedrooms and two bathrooms — accounting for just $10,000 of that.
The owners are two Vancouver residents, according to British Columbia’s Land Owner Transparency Registry.