Kelowna Condos

Kelowna Condos are a hot area of the Real Estate market in the Central Okanagan. 

There are a number of key factors at play right now in the Kelowna Condos market. This is driving a number of big developers to begin 4 to 6 story condo projects and larger residential concrete tower condo projects in the city. Here are the top 5 projects currently underway.

  1. 1151 Sunset  –  102 Kelowna Condos in a high rise condominium tower
  2. Ella  –  116 Concrete Condos in a 20 story high rise condominium tower
  3. One Water Street  –  404 Kelowna Condos in two high rise concrete tower
  4. Ellis Parc  –  91 Kelowna Condos in a 14 Story high rise tower
  5. Aqua  –  350 Kelowna Condos in 3 towers on Okanagan Lake

Added to this list are the nearly completed Sopa Square on Pandosy, The recently approved Beverly condos, which is part of the new Hyatt Place Hotel project and the residential condos developments at Central Green, The Shore, Osprey Landing, Granite at McKinley Beach and Vert at Green Square.

Why the Condo Boom is Happening?

There are a number of fundamentals at play in the central Okanagan that are making all of this possible. lets take a look at a few of the big influencers

Demographic

Kelowna’s economy is growing at one of the nation’s fastest rates of 3.1%. We are also experiencing a surge in our hitech development sector and health and educational sectors. This has resulted in the largest buying group for new homes being the 24 to 35 year old age group. These young adults with great jobs are getting married, starting new families and moving out of their rental units to own their first new home. This group is the largest buyer group currently active in the Kelowna Real Estate Market.

Vancouver

With Vancouver now pricing itself out of the reach for most average households the opportunity for a better life and the chance to own a home is driving buyers from the coast to the interior. With the strong economy many young families are finding good jobs in the Central Okanagan and making the move for the obvious upgrade in lifestyle.  Retired couples are also cashing out of their Vancouver homes and buying much more affordable homes here in Kelowna. They get a better home and a windfall in their bank accounts.

Low Vacancy Rates

As Kelowna struggles to keep up with the new influx of people the vacancy rate for rental units is extremely low at 0.6%. We are the fastest growing community in BC at approx 1.5% and West Kelowna will soon pass Penticton in population size. This places demand on available rental units and raises the rents paid. These higher rents make the transition from renting a home to owning a home a logical and affordable step for many.

Investment Potential

With Interest rates having been at historic lows and now only rising slightly the affordability of mortgages is strong for many families. This allows for first time buyers to qualify for new condos in Kelowna and those wanting to invest in rental property in Kelowna also having a relatively easy time as the rental income covers the mortgage payments for the investor. This has made Kelowna Condos one of the best real estate investments in Canada.

It is interesting to note that we are not involved in a speculative market in the same fashion as Vancouver. And the changes to the down payment amounts required for mortgage and how vacant properties will be taxed has helped to tighten up the rules surrounding real estate speculation.

Supply

The recent low supply of homes in the Central Okanagan has put tremendous demand on the market. If Kelowna condos, townhouses or single family homes are available they tend to sell within 90 days of listing. Many larger Kelowna condo development are sold out before construction begins. This demand forces prices up and creates incentive for developers. In response to this there has been a record setting number of building application in the past 18 months at Kelowna’s City Hall.

All of this positive economic growth, influx of people, strong business economy, and tight real estate market has resulted in the current construction boom. With one of the best lifestyles available in Canada right here in the Okanagan Valley the real estate market has responded with a tremendous increase in Kelowna Condos for sale.

Visit our New Developments section to learn more about what is currently available or in construction.

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