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The
Luxury Home Market in Victoria
by Leslee Farrell
From Homes and Builders magazine
Homes and Builders
asked an expert about the Luxury Home Market in Victoria.
In Victoria when we reference the phrase "luxury home market"
the general tendency is to contemplate the price point of one million
dollars and addresses such as Beach Drive, Uplands, Ten Mile Point,
Ardmore and Deep Cove. In truth, the one million dollar price point
has long been surpassed for some of our more prestigious properties
and the prime locations of these homes now includes areas in almost
every municipality.
An overview of our 1997 year to date sdales for residential properties
valued at $800,000 and higher is outlined below. It shows that, to
date, the Municipality of North Saanich has recieved a greater number
of transactions in this price range than Oak Bay or Saanich East.
This is a first time phenomena which reflects both the rise of interest
in country estates and the fact that a million dollars in the Peninsula
buys a significantly larger property than in Greater Victoria.
1997
Municipality Closed Transactions
Pending (unconditional)* |
| Victoria
|
1 |
| Oak
Bay |
3
*2 |
| Saanich
Each |
3 |
| North
Saanich |
5
*2 |
| Sidney |
1 |
| Central
Saanich |
2 |
| Saanich
West |
1 |
| Metchosin |
1 |
|
In looking to these particular sales only four would be referred to
as luxury homes. It is not uncommon to see these sales figures representing
the land or setting that will be used to create a luxury home. A higher
sale price does not always mean the residence involved was a luxury
home ubt it is always true that the luxury homes will draw the highest
prices. The most expensive luxury home sale this year in Oak Bay was
$2,350,000 (one acre waterfront), while the highest in North Saanich
was $1,500,000 (ten acres oceanfront). It is encouraging to see that
the numbers of total sales of $800,000 and higher have risen to 20
year to date, while 1995 produced only 14 such sales in total and
1996 produced 17 sales in total.
A luxury home stands apart from other properties, not only in consideration
of the amount of money invested in the creation, but in the lifestyle
statement they make. As each of these properties is distinctly unique
from the other, the method of forming their market evaluation is best
understood as a comparable to evaluating an object of art. Each of
the four sales this year for example, shared the fact that they were
ocean front, impeccably crafted and perfectly presented.
Beyond these criteria the properties presented completely different
assets and benefits, and would appeal to completely different buyers.
The owners of these homes make strong personal statements and the
goal is to find someone of similar taste and appreciation.
The first and foremost consideration for assessment has to be an analysis
of the setting and location of the residence. Luxury homes rarely
are found standing alone... they are usually in an area of similar
properties which in fact secures their investment. This is not to
say that a luxury home cannot be set in a forested secluded acreage,
where the potential buyer is prepared to pay a premium for privacy.
The highest percentage of sales of luxury homes in Victoria in the
past, has involved oceanfront or ocean view sites. These two land
features are recognized world wide as premiere property investment
criteria.
| Waterfront
property value accelerates according to the following
considerations... |
| 1.
The location of the property. |
| 2.
The actual waterfrontage (50 ft. to 1,000 ft.). |
| 3.
The direction the waterfront faces ... south is usually
first choice ... west and east are equally appealing...
north facing waterfront is often a concern in prespect
of light and coolness. |
| 4.
The ease of accessibility to the water ie: lowbank
and highbank |
| 5.
The size of the property and the privacy it affords. |
| 6.
The availability of moorage. |
|
The importance of waterfront settings, as a canvas for a luxury
home neighborhood, can best be demonstrated by referring to
the substantial rise of luxury homes in Ten Mile Point over
the
last ten years. In 1987, a waterfront lot of approximately three
quarters of an acre in this area would have sold for $300,000,
while a property of the same size in Uplands would have sold
for $500,000 to $600,000. Today the homes of Uplands and Ten
Mile Point vie equally for the luxury home buyer. One of the
underlying reasons for this tremendous rise in values and exclusivity
can be attributed to the abundance of south, west and east waterfronts
in the Point. Equally desirable on a world wide basis is the
attraction of larger acreages... situated on or off the water
these properties are highly sought after for the privacy they
afford and the possibility of subdivision for investment. Land
sites such as these support the lavish improvements that are
associated with the luxury market. The actual square footage,
standard of construction, choice of fixtures and decor compose
a strong portion of the evaluation, but the overall pricing
still has to be arrived at with other considerations than the
quantitative value. These properties have tremendous emotional
and esthetic appeal as they speak to a lifestyle that exceeds
the concept of pure shelter. The buyer expects the best and
seeks the extra amenities such as swimming pools, tennis courts,
equestrian facilities, private docks and boat houses.
Out of country buyers have been appreciating our fair cities
for years and their purchases increasing in number. From the
forests of Metchosin, the acreages of the peninsula, to the
mansions of Uplands, these buyers cherish the beauty, security
and a quality lifestyle that is among the finest of the world...
irreplaceable indeed...
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