L.A. California = Vancouver BC?

There’s an interest post over at Realestatetalks.com remarking on the fact that Property prices in Vancouver appear to be on par with L.A. even though rents and incomes here are lower. The poster gives a few examples and is interested to hear what investors think about this situation.

$250,000 buys a bachelor condo suite in downtown Vancouver, and it buys a bachelor suit in West Hollywood.

$300-$350,000 buys a 1 bedroom condo suite in West Hollywood, Wilshire, Santa Monica, which is what you will pay for the same condo in downtown Vancouver.

$2 million buys an ocean front Malibu half-duplex beach property (entry level price). In Vancouver, the same shared ocean front half duplex on Pt. Grey Road cannot be had for $2 million. Recent sales I’ve seen there are in the $3-4 million range, which makes Pt. Grey more expensive than Malibu Beach comparables. And in Malibu you get Brad Pitt and Jenefir Anniston as your neighbours!

Entry level single family home (old timer) in Larchmont-Adjacent neighbourhood of Hollywood costs $800,000. The same cost of an entry level home on the West side of Vancouver/Dunbar area.

All comparables that I could see suggest LA prime real estate matches very closely with Vancouver prices across the board. Some of the higher end properties in LA are less than what you’d pay in Vancouver.

Hopefully they will get some informed responses to this, I was quite suprised to hear that Vancouver prices are close to L.A. prices. Is that true?

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Van-snoozer
Van-snoozer
13 years ago

I think the pro Vancouver crowd are missing the point. The prices are high in Van because of number of non-residents purchasing the properties while the locals are shut out. Many of the condos are advertised and 80% sold before they are advertised in Vancouver. That's because developers know that locals don't have the money to buy in their own city. Non-residents are artificially inflating the price. Wages in Vancouver are poor because of the type of jobs there. The city has a very basic economy compared to cities like LA, NY and London. Vancouverites have an inflated view of their city just like their real-estate prices.

digi
digi
13 years ago

londonernow: I don't know, I think we have some work to do.. I mean, how come victoria gets high tech retractable street urinals before us?

Londonernow
Londonernow
13 years ago

are you seriously comparing a world class city such as Vancouver to L.A.? Vancouver should only be compared to places like NY, London or Tokyo. In reality Vancouver prices should be higher than those cities as well, as everyone wants to live there.

ken
ken
13 years ago

Ah! Hamburgers, that makes sense. Its not just about numbers, but actual purchasing power. Thanks for the link Reductimat!

Anonymous
Anonymous
13 years ago

But …we have the….olympics…?I love seeing these comparisons. Seems like our market is full of morons that would sell their mothers for d/t condo. These are the people that keep buying. I hope they like seeing their investments decline in value…

ReductiMat
ReductiMat
13 years ago

Ken,In this context, currency doesn't matter.Rather, the hamburger standard is more apt.

ken
ken
13 years ago

Have they taken exchange rates into account or are they looking at the numbers on par?

ReductiMat
ReductiMat
13 years ago

Too… Many… Sarcastic… Replies… Possible… Can't… Handle… the Pressure.

Anonymous
Anonymous
13 years ago

And thats with a mortgage interest tax deduction in the US! Clearly our property is *more* valuable than theirs.