The penthouse unit of this condo sold for more than $1 million.
The condo market in downtown Ottawa is strong and likely to continue to improve, say local real estate agents.
“The bottom line for the market downtown is that it is very good right now,” says Robert Hof, a realtor who specializes in condominiums with Royal LePage.
The average price of a condo in Ottawa in the fourth quarter of 2009 was $218,167, a five per cent gain since the fourth quarter last year according to the Royal LePage Market Survey Forecast. This was the largest gain of any property class. Detached bungalows increased in value by 3.4 per cent to $332,417 and two-storey houses by 3.7 per cent to $331,917.
The large gains made by condos are due in part to a change of social values, says Pierre de Varennes, president of the Ottawa Real Estate Board. “Condos are now a lifestyle choice for lots of people,” he says. De Varennes says Ottawa is a very “cerebral” market place because it has lots of graduates and post-graduates.
“There’s a large demographic that wants to live downtown,” says Hof.
Earlier this month the Ottawa Real Estate Board, which represents over 2,500 sales representatives and brokers, says that 185 condos sold on its Multiple Listing Service in Ottawa in December 2009. The total number of residential properties sold in 2009 was 14,742, a new record says the Board.
“Ottawa is not subject to the wild swings, it is consistently moving on an upward trend,” says De Varennes. “It’s a very affordable place to live.”
The Ottawa housing market is expected to continue growing this year by an average of 5.9 per cent says the Royal LePage report.
Hof says he expects condos to continue to do well in the immediate future, particularly in Centretown because of the demand for condos downtown. “Anything closer to the downtown core is excellent,” he says.
A 28,000 square foot condo at 72 Queen Elizabeth Dr. was the only condo in Ottawa to sell for more than $1 million last year on the Multiple Listing Service when it sold for $1.1 million, as the Ottawa Business Journal reported in December. Three units at 112 Queen Elizabeth Dr. and three more on Echo Drive are currently listed at over $1 million.
Location, and a good view, are the primary factors that influence the cost of high-end condos, says Julie Teskey, the real estate agent who sold the condos at 72 Queen Elizabeth Dr. She says the penthouse suite, which sold for over $1 million, was designed to be very open, with lots of glass to create a great view. “It’s nothing short of sensational,” she says.
Teskey says condo buyers at every price range are looking for quality that will match the price of the condo.
Teskey says she thinks condos are selling well because a lot of people are looking for a “more intimate” place to live.
Condo development has not always gone over well with neighbours. Dan Turner and Mike Taylor, who live next to the property, opposed the proposed development at 112 Queen Elizabeth Dr., posting a sign that reads “For Sale at 112: One Monstrous Myth. Unlawful design, location. No city approval yet… they wouldn’t, would they?”
Dan Turner told Centretown News in October that the proposed building would cost neighbouring buildings $100,000 in property value because it would block their view of the canal.