This Vanier Condo Building Offers Great Value in Ottawa's Heated Market

We’re now into January 2022 and the Ottawa real estate market seems to continue to pick up speed and home owners of Ottawa are seeing their house or condo price appreciate at an impressive rate. In fact, the December stats have been published which gives us a glimpse of how much of an increase we saw in 2021.

In December 2021, the average residential-class property hit an average $790,980 which was an increase of 18% from the same period in 2020. Condos on the other hand increased to $399,125 an increase of 12%.With property values continuing to increase I suspect there will be continued interest for affordable condominium-class properties for the coming years. We expect higher inflation rates for the coming years as we attempt to recover from the COVID 19 pandemic. Construction prices across Canada has continued to increase due to increased material and labour costs. These increased quite rapidly and at this time it doesn’t appear they would return to what we knew as “normal”. This increase in costs make new condo prices quite expensive often at over $700 a square foot from the City’s popular builders. But, condos are more affordable on a cost approach for buyers looking at purchasing in a heated Ottawa real estate market.

When looking to buy real estate in Ottawa below Ottawa’ average home price things can often get quite competitive and be a frustrating process. Buyers are looking for affordable properties for them and loved ones are searching for hidden gems that offer great value. There are a few groups of people that I come across that fall within this competitive category of Ottawa buyers. 

The first one being home owners looking to downside from their larger homes into smaller size properties with limited to no exterior property maintenance. These house buyers that are downsizing are often looking to also free up some equity from their existing house for their retirement plans. Other buyers looking for entry level price properties are immigrants to Canada who have now saved up sufficient sums of money to qualify for properties in the competitive $300,000-$350,000. Finally, buyers who are purchasing by themselves without a spouse or family to co-sign on a mortgage loan are often finding themselves in this price range.

There are generally two parts to where the monthly fee is going. Condos often seen negatively by buyers because of their monthly condo fees that always catches their attention. Buyers also often qualify for a smaller purchase price if the property is a condominium-class property instead of a freehold property that doesn’t have condo fees. Monthly condo fees count towards the buyers qualifying figures and ratios and would be looked at as a monthly expense. It is important to ask your bank representative or mortgage agent to know if your pre-approval price takes into account that the purchase may be a condominium with monthly fees. It’s easier to understand and perhaps appreciate condos and their condo fees once you know the money is going.

1 — the on-going day to day maintenance such as clearing snow answering support calls from the neighbours and perhaps managing a community pool. I hate to break it to you if you buy a freehold property nobody takes care of these for you. If you don’t like to shovel all winter a snow contract will cost you a few hundred dollars, if you want a pass to a swimming pool this will cost you a monthly membership. Same goes for that gym you attend on a regular. Hence why you should always enjoy the amenities of your condo building. You are paying for them!

2 — the reserve fund. The what? Yes, condos have a reserve fund that is used to pay for future expenses such as new roofs, new windows, asphalt, and more. There is generally a timeline for this work to take place and a estimated budget for the work to be completed. I often remind people that when they are buying into a condo complex with amenities they should always use them because they are paying for them. They should also participate and voice their opinion on items that are brought forward in their condo building by the condo board. I also remind them that houses do need maintenance from time to time such as new roofs, new windows, etc. In the long term, a purchase of a condominium unit can allow you to pay a monthly fee and not have any surprise expenses related to home improvements. Items such as a window in your unit needing replacement would be paid from the common reserve fund that is collected from all owners. Buyers who live in a condo only for a 1–3 years may not see any renovations or improvements to their condo building but those who’ve been there longer 5+ have often seen some renovations and may have a better understanding of where the money is being spent and therefore see more value in the monthly condo fee.

So where do you look? I try to stick to areas that may not be as hyped up now but I feel in the future, could find itself in an area that is seeing good growth. Ways to find these can be to look for areas that has seen new real estate development. Either commercial or residential construction and even investments from the City of Ottawa. 

Specific example? Looking at sales in the Chateau Vanier condo towers which are located at 158 McArthur Avenue in Ottawa’s Vanier neighbourhood is located just East of the Rideau River and is in close proximity to downtown Ottawa.

The area has seen a fair amount of construction activity starting with the newly built apartment building at 350 Montgomery Street and another under construction behind the Tim Hortons at the Montreal Road and Vanier Parkway intersection. There are many more projects of this type planned and being reviewed at this time for the area. We also saw the City of Ottawa invest in the Riverain Park improvement project located on North River Road which will see a new outdoor fitness equipment, basketball court, horseshoe pitch and splash pad. The City also invested in the community with their Montreal Road Revitalization project which is ending in 2022 and included upgrading underground utility lines, watermains and sewers. On the surface pedestrians will enjoy new street plazas, bike lanes, landscaping and street furniture.

In 2021, the buildings saw a total of 42 condo units with an average sale price of $268,538 up 14.8% over 2020. When compared with Ottawa’s average condo price of $399,125 the price point is quite attractive. The average for the Vanier MLS districts was $379,602 up 9% from 2020. This seems to indicate Chateau Vanier condos buildings are quite attractive to buyers which has translated with double digit price growth. I am of the belief the building at 158 McArthur Avenue will continue to see attractive price growth in the coming years.

Looking at the condo sales at 158 McArthur Avenue for 2021 we can see that, on average, one bedroom units sold for $235,900, two bedroom units sold for $270,609 and three bedroom units sold for $292,250.

Any negative? Sure, like everything in life there are some drawbacks. The building has shared laundry which is a sticking point to some people. I find it seems to be a bigger problem for those who already own a property which often had in-unit laundry and are now finding themselves downsizing to a smaller property. First time home buyers who may have rented and are perhaps use to having to do laundry elsewhere in the building may not mind. New immigrants may also be use to this type of arrangement and may be OK with now having the in-unit laundry convenience. Fun fact, in 2021 Ottawa condos with in-unit laundry sold for 55% more than those with shared-laundry. Once must ask themselves: “How much of an inconvenience is this to me?” When we think of the new condos being built we often imagine pools, fitness rooms and outdoor patios. Condos that are lower in price may not have all of the new amenities such as yoga rooms or cinemas they may indoor pools, gardens, saunas, billiard room, and more. The condo buildings of Chateau Vanier is a large complex which which allows them to have some nice amenities that are possible by pooling everyone’s condo fees. The residents can enjoy condo amenities such as a indoor pool and sauna. There’s also an on site site superintendent and management office. The building even has a few commercial units at the bottom. I love doing viewings at this property they have lots and lots of visitors parking which is often a Realtor’s nightmare when showing condo buildings.

Condos at 158 McArthur Avenue are great and some buyers are noticing we can see this buy the increase in price that is slightly then the average for all buildings in the neighbourhood and also by the days on market which stands at 20 days. If you see a property it is important to book an appointment with favorite Ottawa Real Estate Broker, Roch St-Georges, didn’t expect it eh? 

Seriously, if you are looking at buying or selling a unit in the area we can discuss your real estate goals. Whether this is the building for you or not we can evaluate what your real estate requirements are and find suitable options. We can also discuss market trends for this or any other condo building in Ottawa. Own a house and wondering what that property is worth? We can chat about this as well.

Roch St-Georges
Real Estate Broker
613–889–7732
roch@rochstgeorges.com
http://www.rochstgeorges.ca