New home developments along rapid transit see increase in value
The availability of rapid transit is one of the most important things that buyers are looking for in a new home development, and a recent report by Urban Analytics for Onni has demonstrated the increase in value that comes with this convenience.
"Transit plays a big factor in the market," says Nick Belmar of Onni. "This report just substantiates our argument about what people could expect when they buy near transit."
The report notes that new condominiums located along the Canada Line in Richmond and the Cambie corridor in Vancouver saw an increase in value, with Richmond seeing an increase of 21 per cent and the Cambie corridor finding a 33 per cent rise between 2009 and 2010. In Richmond, values increased by 15 per cent before the Canada Line was completed, and then a further six per cent over the first year of the line being open. Cambie saw similar results, with a 19 per cent increase before the line opened and a continued rise after its completion.
"This study shows two things: values of newer condos located near a new rapid transit line will see an increase in value in the period immediately preceding the completion of a rapid transit system," says Michael Ferreira of Urban Analytics. "And that while the rate of value appreciation tends to slow in the months after a rapid transit system's completion, higher values are sustained in the long term."