VICTORIA’S
WATERFRONT
THE NEW GOLD
It used
to be said that everyone wished for a piece of the earth,
now it seems that everyone wishes for a piece of the earth,
with the
ocean attached.
_______________________
Leslee Farrell, Guest Editor
 |
What is driving this market for waterfront
properties in Victoria? Be it the coveted “trophy
property” or an Inner Harbour condominium,
the Victoria waterfront real estate market is driven
by the same factors that have created the fairytale
rise in waterfront values globally. The primary influences
are the record low interest rates, a volatile stock
market, the ultimate belief that waterfront is the
best investment in real estate, and a “lifestyle
dream.” |
Trophy properties are enjoying a resurgence as in today’s
world it is not uncommon for a family to own two or three
special properties in various cities or countries. Whether
it’s a principal residence or a recreational property,
everyone desires their nugget of waterfront. It is a secure
investment and contributes hugely to the big picture of
the balance and restoration of one’s soul. Many buyers
now create a real estate portfolio with waterfront as the
major piece.
In the past, Victoria’s waterfront was significantly
undervalued relative to the rest of North America. However
the internet as a marketing tool brought Victoria to the
world and the world to Victoria. As a result, Victoria
has experienced a significant increase in buyers.
Victoria enjoys the category of being a Number One Destination
City (Conde Nast March 2004).This, combined with the city’s
ongoing love affair with tourism, has had an inevitable
impact on the market. Visitors fall under the spell of
Victoria’s idyllic charm, and contemplate change
in their desire to find a safe and secure community within
this frenzied world.
In the years 2000 to 2003 a large number of our buyers
were American due to the strength of the American dollar.
Today we are seeing an increase in Canadian buyers, specifically
from Calgary, Edmonton and Toronto, although our B.C. buyer
still represents the majority of the sales. In the next
few years we are likely to see the “Whistler Effect” as
we anticipate increased interest drawn by the approach
of the Olympics in 2010.
The profiles of buyers have shown considerable change over
the last three years. Today’s clients include early
retiring Baby Boomers with extra disposable income, investors
(both local and international looking for holding properties),
and families exercising the geographic freedom offered
by the advances in telecommunications as their home becomes
an “office with a view.”
We enjoyed many amazing bench mark sales last year, the
most notable being the sale of Eagles Nest, a premiere
Uplands estate selling for $7.5 million to a B.C. resident.
Other sales of merit would include the glass house called “The
Point” in Ten Mile Point for $4.6 million, the Deep
Cove Chalet property of 6 acres closing at $4.6 million,
and an East Sooke estate, 60 acres in total with 20 acres
on the water at $3.25 million.
I am frequently asked for my opinion on the future of the
waterfront market. At this time I do feel it is still increasing
in value due to the aforementioned factors relating to
who is coming and why they are coming. Certainly as long
as we are enjoying the low interest rates this will contribute
to a vibrant market.
Our inventories of waterfront condominiums and waterfront
properties are exceptionally low. At the time of writing
this article there are only 8 waterfront condominiums available
in the Inner Harbour, and 37 residential waterfront properties
available in all municipalities from Sooke to Sidney (MLS
listings). Large demand and low supply contribute to our
rising market. Testament to the increase in the waterfront’s
relative value is the revival of previously neglected areas.
The Rail yards development at the foot of the Bay Street
Bridge is an example of such a project as was Shoal Point
five years ago. This is a clear indication of Victoria’s
future direction.
Victoria is experiencing a new-found demand as
a place to live, by Canadians and many others
beyond her borders. The indisputable fact is that
we simply cannot make anymore waterfront. It is a
finite commodity. It is where nature herself has
drawn a line in the sand. Invest and Enjoy.
| Leslee Farrell is a guest editor
for Dream House Magazine and a waterfront real
estate specialist for Newport Realty. |
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