Having the highest immigration population in Canada, Richmond opens doors to tremendous real estate opportunities. With the majority of first time home buyers being from China (Largest foreign investor group in Canada), new construction in Richmon See More...
Richmond has some of the fastest developing new construction homes in BC. With an annual growth rate of over 17 percent, real estate here sells. The average price on market for a new construction home here is just around 30 days. This has attracted investors on a national level and a lot of foreign investors as well. With the selling to listing price ratio being at well over 90%, most real estate agents have their corporate offices here as well.
According to Richmond’s market summary, the average or median price of a detached home is just around $925,233.00. The average sale though is always over a million. Making it a great market for mid level and more established investors. First time home buyers in Richmond come from affluent families and usually purchase more homes in the same area. With a solid annual growth rate, the ROI is expected to continue.
As far as condos go, the average age is around 25+ years which is still relatively young. However, new construction condos and their rapid development is overtaking these previous constructions. New construction homes are also inclined to have 2 to 3 bedrooms. Which is relatively large versus other new construction homes in BC.
Majority of new construction homes in Richmond also come in 3 bathrooms. Which makes it an ideal place to invest for single family homes. The general population is also highly educated and well employed. This has increased the number of first time home buyers who rent out immediately.
Attached new construction homes have experienced a slight drop in pricing during this year but detached homes are still stable. Detached homes in Richmond are also expected to experience another rise in average pricing by at least 3%.
Due to the high pricing, most homes bought in West Van are closed through large investor groups. This allocates the right ROI from the start for each investor in most real estate deals.
Overall, the new construction market is moving towards an upward trend. New construction homes for sale in Richmond are selling at a higher percentage every month. The size and dimensions of these new homes have stayed similar to previous models but is attracting more millennial investors. The previous demographics for the first time, buyer or investor, has changed, and sales continue to go up.
Richmond also offers stable financing and mortgage rates. With minimum fluctuations in the last 3 to 5 years. A high percentage of buyers in Richmond do require lenders but cash investors are the ones that are moving the local real estate market.
Experts predict the housing marketing in Richmond to surpass Vancouver in 8 years. Due to incoming and continual foreign investments and new construction of detached and attached homes. Especially around the downtown and southern part of Richmond. Richmond is also the closest city from the airport so rapid development is expected to continue for another two decades. Or until another international airport is created within another close by city.
The mayor of Richmond is also very proactive to progressive developments in the city and has set aside several programs for first time buyers and investors.
According to MLS® Home Price Index – Real Estate Board of Greater Vancouver (August 2020):