Growth continues unabated in St. John’s luxury home market, with demand reaching unprecedented levels yet again in 2013. Residential sales over $500,000 broke the existing record in 2013, with 172 units changing hands compared with 161 in 2012, representing a seven per cent increase over one year ago. With approximately 220 listings available for sale, the upper end remains firmly in buyer’s market territory. Yet, the softer conditions have served to invigorate activity, as buyers are enticed by favourable selection and good value for their dollar. Rising fortunes have also bolstered high-end sales.
The buyer pool at the upper price points has increased in recent years due to several factors, including strong equity gains, rising incomes, population growth, an increase in skilled and professional jobs, solid business and capital works investment, as well as an expanding natural resources sector. All have contributed to strong underlying confidence in the future of St. John’s and its residential housing market. Activity remains steady, with the bulk of activity occurring between $500,000 and $800,000, with buyers split between older, established neighbourhoods and newer areas. Sunset Gardens, just 10 minutes outside the city, will be a new community to watch in 2014, as builders release a number of lots, with starting prices anticipated to be in the $600,000 range.
Given an oversupply in the condominium market,the number of new units coming to market has been limited, and particularly so at the upper end. One or two projects, involving high-end units, may be announced this year, which could help lift sales in this segment. On the whole, however, condominiums remain a minute portion of the high end market. Place Bonaventure Condominiums, King Edward Court and The Narrows remain among the city’s most prestigious luxury condominium addresses. The most expensive property sold in 2013, at $1.5 million, involved a 3,220 sq. ft. condo on Duckworth Street with an unobstructed view of the St. John’s Harbor. The most expensive listing currently available is a 6,000 sq. ft. historic property on Kings Bridge Road priced at $1.8 million. Those interested in the condominium life style can snap up the city’s most exclusive listing, the Penthouse at Elizabeth Towers, for $999,900, which comes with a scenic 1,100 sq. ft. patio.
Infill continues to occur on a sporadic basis throughout the city, but lots in established neighbourhoods remain few and far between. Some have come up in Churchill Square around the $450,000 price point, with custom builds bringing combined property and home values closer to $1.2 million, when complete. With the Newfoundland economy continuing on a growth trajectory in 2014, the upper-end is expected to remain healthy, as luxury sales match or exceed year-ago levels. While some price adjustments are still occurring, properties that are listed at fair market value are garnering interest. Overall, prices will remain stable or post modest growth year-over-year, depending on location.
** SOLD ** Welcome to 9 Janeway Place Unit 404. Completely renovated two bedroom condo located on the top floor. Hardwood and ceramic flooring throughout most of the condo. Crown mouldings, stylish kitchen with modern back splash. Enjoy an extra-large master bedroom with separate sitting/reading area. Spacious and bright open concept living room with doors leading to a balcony deck. Enjoy the evening sun and the panoramic views of Signal Hill, downtown St. John`s and the Bally Hally golf course. The Virginia River walking trail is only steps from your door downtown is within walking distance. MLS: 188807 Asking price is $229,900. For more information contact Fraser of Stephen Winters.
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** SOLD ** NEW PRICE – $329,900 SELLING BELOW APPRAISED VALUE. Tiffany Lane is one of the most sought after locations in St. John’s. Fraser and Stephen just listed 12 Tiffany Lane, a beautiful executive end unit townhouse (known as “The Cedars”) next to Tiffany Towers. Hardwood floors throughout most of the main floor. Separate dining room. Spacious living room with wood burning fireplace. Two large bedrooms on the second floor. Basement has a large rec-room and 3 piece bathroom. Lots of upgrades in recent years. This condo has one of the biggest lots for the “The Cedars.” The backyard has a patio deck and is fully fenced.
Asking price $334,900 REDUCED: $329,900 MLS: 179982.
Kirkland Balsom and Associates have just released their Real Estate Market Overview 2010 for St. John’s. I’ve shared this report the past 2 years and once again this year they are “spot on” with their assessments.
Here is an outline of their report:
Strong demand with less supply results in higher prices
The residential market just keeps on rolling! Demand remains strong and supply remains tight for well located and appropriately priced homes. The underlining drivers for this strong demand appears to be the fear of having to pay more in the future, easy access to favourable financing and strong employment throughout the region. A substantial increase in land values over the past year spurred new home construction cost and more than offset a slight softening in the sub-trades. Anticipated higher borrowing cost in late 2010 may serve to increase demand in the first half of 2010; however, could weaken demand in the second half. Pending an unforeseen increase in listing inventory, further price increases is
Effective full occupancy
With the apartment complexes at effective full occupancy and no new inventory on the horizon, rental rates should continue to increase. Not surprisingly in light of these trends, investor interest remains strong. A number of older apartment buildings in the university area have been purchased, renovated and converted to condominium units. Market activity also remains strong in the small scale 2-6 unit projects as entry level investors compete for limited supply.
Prices/demand continues to strengthen in condominiums at all price points. Escalating construction costs and an aging population will stimulate condo demand and values in the coming year.
25 Tiffany Lane unit 314 $194,900 - SOLD-
Located near Kents Pond in East End St. John’s, this 2 bedroom condo has it all. Open design concept, hardwood floors throughout most of property. Two spacious bedrooms. Two bathrooms. Separate storage room located inside condo as well as plenty more in basement of building. Lots of upgrades in past few years including new roof and new vinyl windows. Building is well maintained and beautifully landscaped. Secure building with elevator. Near walking trails and all amenities. Asking price is $194,900. Call Fraser or Stephen Winters today for more information. 682-9245 or 682-9045
58 Charter Ave Unit #302 – $137,900 - SOLD –
Fantastic two bedroom condo with plenty of upgrades. Mostly hardwood & ceramic floors. White kitchen cabinets. Spacious living room with patio door to balcony overlooking Quidi Vidi Lake and Signal Hill. Laundry room inside condo. Great location in St. John’s Pleasantville area. Near downtown St. John’s. Asking price is $137,900. Call Fraser or Stephen Winters for more details.